Thai DSI: 'Big rings behind luxury car scam'

[Thaddeus]

Could always lower the tax to eliminate black market all together, might even make money money in tax by selling more luxury cars at decent prices

.....this good idea from konying is just far too difficult for any Thai official to figure out.........

Actually it is very simple, but requires a degree of common sense and just a touch of honesty.

[pitrevie]

I think this is an excellent example of police work.

youtube.com/watch?v=MUrhdIxTJSA

[smotherb]

" The smugglers are clearly influential people... "

Well that's an end to that investigation.

No!!! It must go on!!! Lets get those bad Malaysians for helping our Crooks.

Wait, I thought the Myamies were the escape goat du jour.

[Thaddeus]

UPDATE:

Authorities believe that this is part of an international automobile smuggling ring operating from across the border in Malaysia, according to the Department of Special Investigation (DSI).

Source: http://englishnews.thaipbs.or.th/mystery-may-29-pak-chong-luxury-car-fire-last-year-divulged/

-- Thai PBS 2014-10-16

Or to put it another way.

No Thai would do this.

[FredNL]

I would NOT drive a BMW, Mercedes, Ferrari or Porsche assembled in Thailand.....

Way too dangerous !

Edited October 16, 2014 by FredNL

[chotthee]

Ferrari was amazed why Thai buyers wanted their car seats to be shipped in separate containers to Thailand.

The Thai buyers claims they want it to be assembled in Thailand.

[mok199]

hahaha and it took the genuis a ''pie chart'' to figure that out....thais are so thick....sawadee extra (crap)

[Just1Voice]

Could always lower the tax to eliminate black market all together, might even make money money in tax by selling more luxury cars at decent prices

.....this good idea from konying is just far too difficult for any Thai official to figure out.........

Actually it is very simple, but requires a degree of common sense and just a touch of honesty.

Actually it is very simple, but requires a degree of common sense and just a touch of honesty.

You just summarized it completely. Thai are seriously lacking in those two areas.

[Hockeybik]

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exactly, 300% tax means you are encouraging criminal activity. If it was a more reasonable 30%-60% I'm sure most people would pay it as there would not be such a lucrative profit margin.

With a minimum of 300% tax on a luxury car not made in Thailand what do they expect. That's the biggest robbery I see here, excessive import tax.

Unfortunatly commonsense eludes Thai governments.

Actually common sense eludes most governments but you both hit it spot on. If the tax were reasonable, most people who want fine cars would just pay it and not take the chance of having problems with government. But 300% tax makes it attractive for officers of the government to accept "gratuities" to let things slide and for consumers to take their chances circumventing the tax. Markets do not respond well to outside pressures and that's all this is, is a market force being resisted.

[mike324]

Freight forwarding companies are also in on the scam, they give customs official a little tip to ignore containers that have car parts in them. Not only that, custom officials notifies freight forwarders of incoming shipments from the freight forwarders customers so they can speed up the clearance process. With so many goods coming in, I have no idea how the customs system works that they can track who the freight forwarders customers are.

I caught my freight forwarder red handed. I had a container of goods coming in, but I switch my freight forwarder. The customs notified my old freight forwarder that I have a shipment coming in. My old freight forwarder called me and told me that my goods were held up by the customs and they are demanding XXX amount to clear the goods. But my goods were already cleared by my new freight forwarder and on the way to my warehouse. I have been ripped off for over 10 years by this old freight forwarder, and now they even have the guts to call and ask why we are not using them anymore to handle our shipments.

[Oziex1]

Hey General/PM, you can do anything you want in your country all you have to do is pay off Thai people!

[arrowsdawdle]

" The smugglers are clearly influential people... "

Well that's an end to that investigation.

Until two Myanmar migrants responsible can be found, because no local citizen would do such a thing.

[NeverSure]

Agree with all about the excess, and how it puts a big profit into smuggling.

When this happened, I wondered if someone didn't get his cut and torched them. ??

[gemini81]

Criminal level unheard of tax rates on import cars: you idiots CREATE a black market for it! You deserve it, and I hope it causes you to lower tax and be reasonable.

To only now see how 'it may be some big names' and 'there may be some malaysians to blame' means some guys at DSI need fired and ought to get a job as a barber, host, or bellboy.

Edited October 16, 2014 by gemini81

[clockman]

The customs are the problem, now what general controls the customs?

[kimamey]

I believe the following are the reasons for the High Tax on Vehicles in the Kingdom. For most new cars and trucks a 300% "road tax" is charged at time of purchase. For Luxury cars (BMW, Mercedes, Porsche, etc.) in the Kingdom, the road tax is 600%. The reason being is that the Tax generated, pays for road construction and maintenance. I also believe that a Tax of 500% is imposed on Tobacco and Alcohol. The Government determined that Cigarette smokers and Alcohol drinkers spend more time in Hospital than those that refrained from those habits. So, that tax is used to make all Government Hospital's essentially free (30 Baht for their service). I believe that those are the original reasons and might or might not be still valid.

The reason being is that the Tax generated, pays for road construction and maintenance.

That explains the state of the roads up here in Isaan and the north and probably anywhere outside Bangkok. Not enough luxury cars.

[kimamey]

Was a pink Bentley summonsed for inspection? I very much doubt it!

I think it was checked and found to be OK. Mind you that was under Tarit's watch.

[TechnikaIII]

The 300-600% tax is the mother of all invention. It is absolutely outrageous.

Edited October 16, 2014 by TechnikaIII

[Commerce]

The customs are the problem, now what general controls the customs?

I think you'll find that is the General who was placed in charge as the 'Minister of Kite Flying'; General #837, or something.

[Soiyamoto]

Its always somebody else's fault

[mango66]

only a few hundret to thousand cars , peoples !!

this is nothing in comparison to 70 mill thai people !!

this is only 0,014%% promill !

this is nothing !!

bettor not to waste time for them;

Concentrate on the other 69.999.000 car owners,

rip off them and it brings you a TRILION thb;

[mango66]

Thais never would and will do that !!

I mean to produce a car with such a quality that

you would be keen to pay 300% tax :-) ;

[phanangpete]

The jails are just not big enought, the courts could not deal with the pending prosecutions, the system breaks down.

The DSI will continue going round in circles, cause no one wants to take responsibility for what should be a logical outcome to this scam.

It would take a decisive statement from the PM , on what course of action he intends to take, will this happen, no, why , too many influential people involved, and it may collapse the junta Govt !

[mango66]

I believe the following are the reasons for the High Tax on Vehicles in the Kingdom. For most new cars and trucks a 300% "road tax" is charged at time of purchase. For Luxury cars (BMW, Mercedes, Porsche, etc.) in the Kingdom, the road tax is 600%. The reason being is that the Tax generated, pays for road construction and maintenance. I also believe that a Tax of 500% is imposed on Tobacco and Alcohol. The Government determined that Cigarette smokers and Alcohol drinkers spend more time in Hospital than those that refrained from those habits. So, that tax is used to make all Government Hospital's essentially free (30 Baht for their service). I believe that those are the original reasons and might or might not be still valid.

That might be correct for smokers and drinkers,

but for victims of exident with this cars,

usualy they dont need a hospital any more ( just need a red bull - thats it )

and drivers anyway save in this cars !

[Bluespunk]

"Big rings, influential people" these guys run the circus and get away with everything. Where is a guy like Pol Pot when you need him?

Nobody will ever need a genocidal murdering scum bag like pol pot.

[Bluespunk]

Every-one know what about the truth around these cars, expect the DSI ...

To be fair to the DSI, I'm fairly sure they knew what was going on......

[Ulic]

No surprises here. Of course the simplest way to curb the problem is to lower the tax rate to 70% for cars and parts. Even 100 %

would probably stop the problems. Of course the people who run this scam (well connected) will want the status quo to remain.

[bangon04]

Could always lower the tax to eliminate black market all together, might even make money money in tax by selling more luxury cars at decent prices

.....this good idea from konying is just far too difficult for any Thai official to figure out.........

agreed - this is not the place to exhibit farang logic or economic principles. You should know better.....

[Baerboxer]

The jails are just not big enought, the courts could not deal with the pending prosecutions, the system breaks down.

The DSI will continue going round in circles, cause no one wants to take responsibility for what should be a logical outcome to this scam.

It would take a decisive statement from the PM , on what course of action he intends to take, will this happen, no, why , too many influential people involved, and it may collapse the junta Govt !

You are probably right. Let's see how many prosecutions and convictions come out of this investigation.

[JacChang]

Thailand is the only country where I feel uneasy when buying a new car. Having to pay a lot more than the value of the car I know beforehand. Oh well, it helps Toyota I guess.