Thai Customs Dept. to enforce tax collection on luxury cars

[webfact]

Customs Department to enforce tax collection on luxury cars

BANGKOK, 23 April 2014, (NNT) - The Customs Department has instructed its officials to step up the enforcement of policy on the value declarations of imported luxury cars, in order to prevent tax evasion.

Mr. Rakop Srisupa-Att, Director General of the Customs Department, the measure is necessary as it is common practice as the baht weakens, for several importers to declare a value of the vehicles, less than their actual prices, drastically reducing the amount of tax importers have to pay.

The current political impasse and the weaker baht have in effect sent the import tax higher and in turn diminished the number of imported cars, Mr. Rakop pointed out.

He explained that a decline of two baht in the exchange rate of the baht would cost the importer of a 3 million baht car an additional 700,000 Baht.

Director General Rakop explained that the amount of tax a luxury car importer has to pay is a combination of import tax, excise tax and 320 percent value added tax on the declared price.


-- NNT 2014-04-23

[Tatsujin]

. . . a combination of import tax, excise tax and 320 percent value added tax on the declared price . . . ouch!

[Patje]

Greed at it's best !!

[Pib]

Customs Department to enforce tax collection on luxury cars

The govt/police have no idea what the word "enforce" means....it's a foreign concept.

[NongKhaiKid]

Will this be pursued with the same vigor the DSI put into their luxury car scam enquiry ?

With the amazing tax figure on a Bt.3 Million car it's little wonder the Customs Dept has the reputation of being one of the most corrupt govt departments as the situation is tailor made for ' arrangements ' to be made.

[bigbamboo]

But criminals and the very rich don't pay taxes.

And they're the only ones who buy imported cars with Thailand's crazy duty mark ups.

[ChrisY1]

Yes.....well it will be interesting of this happens to "all" importers....what happened to the illegal imports and parts scams that were being investigated last year.........

If by this announcement it means that the Chalerms of Thailand will pay import tax??....

Again...pigs and wings........

[laurentbkk]

when you see the price of cars compare with Europe , all cars are luxury in Thailand .... even the cars made in Thailand are double price .... and never seen so many in Bangkok ... a very good business indeed.

[mca]

when you see the price of cars compare with Europe , all cars are luxury in Thailand .... even the cars made in Thailand are double price .... and never seen so many in Bangkok ... a very good business indeed.

A new mini cooper in LOS is over 2.3 million baht but a quick surf on the internet brought up a private seller in the UK with a 2002 model, 99000 miles for the equivalent of 86,000 baht. Sure its getting on in years and mileage but 86k in Thailand is getting you a set of wheels where there's a fair chance you might not make it to your destination.

Here's some more from the UK

2004 Bentley Conitnental GT 60,000 miles 1.4 million baht

2005 Maserati Quattroporte 56,000 miles 735,000 baht

2007 Mercedes S500L 90,000 miles 789,000 baht

That import tax is a killer!

[Woodsie888]

Why do so many expats feel the need to endlessly compare prices of cars with the west?

I notice nobody complains about the cheap price of pick ups or lots of other things here.

Very curious indeed.

[issanaus]

Why do so many expats feel the need to endlessly compare prices of cars with the west?

I notice nobody complains about the cheap price of pick ups or lots of other things here.

Very curious indeed.

A lot are in Thailand for cheap pickups

[bulekee]

Why do so many expats feel the need to endlessly compare prices of cars with the west?

I notice nobody complains about the cheap price of pick ups or lots of other things here.

Very curious indeed.

I believe the substance of life is cheaper in the UK ( beer) and many foods now.Ok another arguement for you,why are flights more expensive from Thailand to the UK.

[transam]

Perhaps a luxury tax in farangland on Thai rice is in order eh, lets level things up a bit...........

[TVGerry]

Every baht helps this government pay off the farmers and the first time car owners!

[transam]

Every baht helps this government pay off the farmers and the first time car owners!

More like new houses and "Luxury" cars for staff........... ...............

[ezzra]

New equation... steal and cheat less money and goods, and you will have more money left over, simple....

[DLock]

Not this old chestnut.

Will go nowhere again.

[webfact]

Customs officials to act tough on luxury car importers



BANGKOK: -- The Customs Department is to strictly enforce collection of import duties on luxury cars after importers tended to declare lower value of the vehicles to avoid higher tax payment.

Customs Department director-general Rakop Srisupa-att said tougher measure is necessary as it becomes a common practice for importers as the baht weakens to declare a value of the vehicles, less than their actual prices, drastically reducing the amount of tax importers have to pay.

The current political impasse and the weaker baht have in effect sent the import tax higher and in turn diminished the number of imported cars, he said.

He explained that a decline of two baht in the exchange rate of the baht would cost the importer of a 3 million baht car an additional 700,000 Baht.

Mr Rakop explained that the amount of tax a luxury car importer has to pay is a combination of import tax, excise tax and 320 percent value added tax on the declared price.

Source: http://englishnews.thaipbs.or.th/customs-officials-act-tough-luxury-car-importers/


-- Thai PBS 2014-04-23

[bigbamboo]

Why do so many expats feel the need to endlessly compare prices of cars with the west?

I notice nobody complains about the cheap price of pick ups or lots of other things here.

Very curious indeed.

I believe the substance of life is cheaper in the UK ( beer) and many foods now.Ok another arguement for you,why are flights more expensive from Thailand to the UK.

I always thought it was because the Thais don't want us lovely Brits to ever leave.

[Sydebolle]

a) somebody has to pay for the rice (and does not mean, that the money ends up with the farmers)
somebody has to pay for the THB 100'000 rebate on first-car-owners (all the illiterate Grannies upcountry)
c) somebody has to pay for the court case by the navy against a news agency

d) laws/taxes need to be kept up to line the pockets of those who should implement/collect the aforementioned

In normal countries car taxes are close to nothing as the money is made on fuel tax takings. In tight places (i.e. Singapore) you need to own a transferable car entitlement registration; the price of the latter can fluctuate according to the supply/demand of those entitlements.

A brand new Mercedes C190, built, assembled and sold in Germany, has nothing to do with the crap they sell here as locally assembled ashtray on wheels. Same with the price; your money buys at least three brand-new German cars compared to the Thai version of "slightly" poorer quality!

I rest my case

[mihalis]

We get ripped off, in OZ too...

[Spoonman]

Timely announcement just before all the sports cars are shipped to Sepand for the first round of the Thai Super Car series.

Wonder if any will have problems bringing their cars back after the race like last year.

[Loles]

So, AGAIN ???

[Woodsie888]

a) somebody has to pay for the rice (and does not mean, that the money ends up with the farmers)

somebody has to pay for the THB 100'000 rebate on first-car-owners (all the illiterate Grannies upcountry)

c) somebody has to pay for the court case by the navy against a news agency

d) laws/taxes need to be kept up to line the pockets of those who should implement/collect the aforementioned

In normal countries car taxes are close to nothing as the money is made on fuel tax takings. In tight places (i.e. Singapore) you need to own a transferable car entitlement registration; the price of the latter can fluctuate according to the supply/demand of those entitlements.

A brand new Mercedes C190, built, assembled and sold in Germany, has nothing to do with the crap they sell here as locally assembled ashtray on wheels. Same with the price; your money buys at least three brand-new German cars compared to the Thai version of "slightly" poorer quality!

I rest my case

I'm not familiar with the C190 you quote, but I can guarantee that you can not buy a spec for spec C Class in Germany at one third the price of the Thai equivalent. I am happy to be proven wrong if you can demonstrate otherwise. The standard spec offered in Thaland is far higher than standard spec in Germany which must be taken into account.

As for "slightly" poorer quality, you obviously know something Mercedes Benz do not.

Absolute rubbish.

[empireboy]

But criminals and the very rich don't pay taxes.

And they're the only ones who buy imported cars with Thailand's crazy duty mark ups.

That sounds like a ridiculous and totally unfounded assertion that I seriously doubt you can substantiate... I know people who do not fit your very rich or criminal categories who drive an expensive imported car....

[empireboy]

Governments the world over make revenue from taxing people spending on non-essentials... If you have the money to buy an expensive import you probably have a choice to live where you like it best....

[8OA8]

when you see the price of cars compare with Europe , all cars are luxury in Thailand .... even the cars made in Thailand are double price .... and never seen so many in Bangkok ... a very good business indeed.

A new mini cooper in LOS is over 2.3 million baht but a quick surf on the internet brought up a private seller in the UK with a 2002 model, 99000 miles for the equivalent of 86,000 baht. Sure its getting on in years and mileage but 86k in Thailand is getting you a set of wheels where there's a fair chance you might not make it to your destination.

Here's some more from the UK

2004 Bentley Conitnental GT 60,000 miles 1.4 million baht

2005 Maserati Quattroporte 56,000 miles 735,000 baht

2007 Mercedes S500L 90,000 miles 789,000 baht

That import tax is a killer!

I don't know about your preferences, however personally I always found it so much more convenient buying and using my car in the same country that I live in.

[steveyinasia]

Is this a picture of the staff parking lot at the Thai Customs department?

Customs officials to act tough on luxury car importers



BANGKOK: -- The Customs Department is to strictly enforce collection of import duties on luxury cars after importers tended to declare lower value of the vehicles to avoid higher tax payment.

Customs Department director-general Rakop Srisupa-att said tougher measure is necessary as it becomes a common practice for importers as the baht weakens to declare a value of the vehicles, less than their actual prices, drastically reducing the amount of tax importers have to pay.

The current political impasse and the weaker baht have in effect sent the import tax higher and in turn diminished the number of imported cars, he said.

He explained that a decline of two baht in the exchange rate of the baht would cost the importer of a 3 million baht car an additional 700,000 Baht.

Mr Rakop explained that the amount of tax a luxury car importer has to pay is a combination of import tax, excise tax and 320 percent value added tax on the declared price.

Source: http://englishnews.thaipbs.or.th/customs-officials-act-tough-luxury-car-importers/


-- Thai PBS 2014-04-23

[americaninbangkok]

"The Customs Department has instructed its officials to step up the enforcement..."

Yes, but did they vow?!

[ratcatcher]

"The Customs Department has instructed its officials to step up the enforcement..."

Yes, but did they vow?!

No, I think they prefer to pledge after mulling it over.