What will happen to new car prices on 1-Jan-2016

[JAS21]

Does anyone have much of an idea what increase there will be due to the new Excise Tax Structure which comes into force on 1st Jan next year. I found this article ... http://fuelsandlubes.com/flw/thailand-to-tax-vehicles-based-on-co2-emissions-by-2016/ ... but it's not very definitive and is it accurate. I'm sure that there are some guys on this forum who have more than an inkling... would you share it please.

I didn't really want to buy anything this year but have an order in as I fear that vehicle will have quite an increase.

[Briggsy]

Et voila

http://www.motorexpo.co.th/news/308

New rates on the left. Old rates on the right. Hope you can read Thai.

[sanuk711]

Et voila

http://www.motorexpo.co.th/news/308

New rates on the left. Old rates on the right. Hope you can read Thai.

Or you could use Google translator ------------

https://translate.google.co.uk/translate?sl=th&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.motorexpo.co.th%2Fnews%2F308&edit-text=&act=url

[Guest]

Et voila

http://www.motorexpo.co.th/news/308

New rates on the left. Old rates on the right. Hope you can read Thai.

Or you could use Google translator ------------

https://translate.google.co.uk/translate?sl=th&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.motorexpo.co.th%2Fnews%2F308&edit-text=&act=url

Right after you invent a way to copy from an image, then past it.

[sanuk711]

Are you joking........ do you not know how to use Google translate ?? and I thought I was a comp blond............

PS Bankokequaty......you don't copy the pages.....you just copy the URL........photos everything are then modified to the language you want.

Edited June 26, 2015 by sanuk711

[uwe_rayong]

Are you joking........ do you not know how to use Google translate ?? and I thought I was a comp blond............

PS Bankokequaty......you don't copy the pages.....you just copy the URL........photos everything are then modified to the language you want.

Bangkokequite probably meant it is not possible to translate text that is inside a picture:

which is correct.

[Henryford]

So for those of us who can't read Thai, what does it mean?

[HerbalEd]

Et voila

http://www.motorexpo.co.th/news/308

New rates on the left. Old rates on the right. Hope you can read Thai.

Or you could use Google translator ------------

https://translate.google.co.uk/translate?sl=th&tl=en&js=y&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fwww.motorexpo.co.th%2Fnews%2F308&edit-text=&act=url

Right after you invent a way to copy from an image, then past it.

Do you actually know how to use Google Translate? Obviously not.

[IMHO]

The short answer is: prices will generally go up.

Although there are some categories that remain unchanged, or in the case of eco cars and some European diesels, actually going down, every year there are price increases, so you shouldn't expect cars to get any cheaper.

The most notable price increases will be for extra/smart cab pickups (3% > 5/7%) and PPV's (20% > 30% - no current model will qualify for the lower 25% rate).

The most notable reductions will be <3,000cc but >220PS Euro imports like the the Benz GL350 (50% > 35/40%) - but will the full benefit of these reductions will be passed on to the consumer?

[Pib]

Thailand just loves its "excise" (and VAT) taxes on stuff....it's a way to get everyone, poor or rich, to pay taxes versus having to rely on personal income taxes (which the majority of Thais don't pay) as the bulk of your tax revenue.

Of course it could be worst...you could live in some western countries which are heavy into personal (which the majority do pay), excise, and VAT taxes. Taxes are addictive to governments.

[mango66]

Are you joking........ do you not know how to use Google translate ?? and I thought I was a comp blond............

PS Bankokequaty......you don't copy the pages.....you just copy the URL........photos everything are then modified to the language you want.

please explain how to translatea picture in another language ?

the comparison is a picture,

but if someone clever, without thai knowledge can estimate whats written,

if he read the full text along the picture ! :-))

[Pib]

Are you joking........ do you not know how to use Google translate ?? and I thought I was a comp blond............

PS Bankokequaty......you don't copy the pages.....you just copy the URL........photos everything are then modified to the language you want.

please explain how to translatea picture in another language ?

the comparison is a picture,

but if someone clever, without thai knowledge can estimate whats written,

if he read the full text along the picture ! :-))

I'm also looking forward to the explanation of how an image is being translated.

Google Translate can only deal with "text" not an image/picture...if the text is really embedded in the image (like you can't cut and paste out only the text) instead of text that may look like an image but it's really not, then Google Translate can't perform any text translation.

That's what I hate about a lot of web sites that are shifting more to images with embedded text which is just image text versus images with separate text that can be keyed upon and translated.

[JAS21]

If I understand correctly, and hopefully I do ...

Excise Tax and VAT are added after import taxes are added and that is the basic price. Or the basic price is the built price here (CKD or whatever) ... then from the chart ....

A PPV eg Everest T+ at present the final price is about. 1,599,000 Made up of .....

Basic Price 1246000

Exercise tax 249200 ie 20%

VAT 104664 ie 7%

That actually come to about 1599864

Now the CO2 will be greater than 200gms/Km the Excise tax will increase to 30% so we get I think!

Basic Price 12460000

Exercise Tax 373800 30%

VAT 113386 7%

That actually come to about 1,733,186 an increase of 133,382thb.

For a Hybrid costing now say 1729000thb

Basic Price 1469000 (about)

Excise tax 146900 10%

VAT 113113

That actually comes to 1,729,013thb

CO2 will be between 100 and 150 ... I think that I read 135gm/Km somewhere so Exercise Tax will increase to 20% ... so now

Basic Price 1469000

Exercise Tax 293800 20%

VAT 123396 7%

Total 1886196thb

So an increase of 157,183thb

Will someone point out if these examples are not approx. correct please .... if they are then it looks like if you want to purchase either of these examples then do it this year and I guess allowing time for the vehicle to be paid for and registered by the dealer. December Motor Show might be too late.

[thousandpercent]

Thailand just loves its "excise" (and VAT) taxes on stuff....it's a way to get everyone, poor or rich, to pay taxes versus having to rely on personal income taxes (which the majority of Thais don't pay) as the bulk of your tax revenue.

Of course it could be worst...you could live in some western countries which are heavy into personal (which the majority do pay), excise, and VAT taxes. Taxes are addictive to governments.

Taxes are addictive to governments because air traffic safety, waste water treatment, fire suppression, parks, agricultural research, vaccinations, currency stability, and labor regulation are addictive to taxpayers. So it works out very well for everyone. I'm sure you have never missed an opportunity to suck at the government's tit.

[IMHO]

If I understand correctly, and hopefully I do ...

Excise Tax and VAT are added after import taxes are added and that is the basic price. Or the basic price is the built price here (CKD or whatever) ... then from the chart ....

A PPV eg Everest T+ at present the final price is about. 1,599,000 Made up of .....

Basic Price 1246000

Exercise tax 249200 ie 20%

VAT 104664 ie 7%

That actually come to about 1599864

Now the CO2 will be greater than 200gms/Km the Excise tax will increase to 30% so we get I think!

Basic Price 12460000

Exercise Tax 373800 30%

VAT 113386 7%

That actually come to about 1,733,186 an increase of 133,382thb.

For a Hybrid costing now say 1729000thb

Basic Price 1469000 (about)

Excise tax 146900 10%

VAT 113113

That actually comes to 1,729,013thb

CO2 will be between 100 and 150 ... I think that I read 135gm/Km somewhere so Exercise Tax will increase to 20% ... so now

Basic Price 1469000

Exercise Tax 293800 20%

VAT 123396 7%

Total 1886196thb

So an increase of 157,183thb

Will someone point out if these examples are not approx. correct please .... if they are then it looks like if you want to purchase either of these examples then do it this year and I guess allowing time for the vehicle to be paid for and registered by the dealer. December Motor Show might be too late.

It's not that simple I'm afraid.

Refer to these links for how to calculate the actual rate, vs the headline rate:

http://www.thaivisa.com/forum/topic/435479-taxes-on-cars-in-thailand/

http://www.customs.go.th/wps/wcm/connect/custen/traders+and+business/sample+of+duty+assessment/sampleofdutyassessment

as a guide:

3% = 3.1% actual

10% = 11.2%

20% = 25.6%

25% = 34.5%

30% = 44.8%

35% = 56.9%

40% = 71.4%

50% = 111.1%

Because the formula goes like this:

Excise Tax: Factory Cost * Excise Tax Rate / (1-(1.1 * Excise Tax Rate))

don't forget that there's always an interior tax, as well as VAT too

Edited June 26, 2015 by IMHO

[JAS21]

I feared that it would be more complicated than I assumed ... That means that my estimates could be a bit on the low side? or completely rubbish!

[thailandforumaddict]

What about Benz and Porsche will they increase ? We might change one of the cars soon.

[Pib]

No one should worry because the govt says not to worry about it...vehicle sales won't be hurt much and the price won't increase much...see below. I'm now relieved.

New emissions tax won't hurt car sales much: minister

THE NATION March 17, 2015 1:00 am


INDUSTRY Minister Chakramon Phasukavanich has said the restructuring of automobile excise tax to include an emissions levy that will become effective from January 1 next year should not have a significant impact on people's decisions to buy a new car.
Consumers should not worry too much since the new tax rates will apply only to new models, he said yesterday.

Chakramon said it would not be fair for the new tax rates to applied to old car models and consumers would benefit, since automakers would compete more to deliver quality and would give consumers more choices.

Some vehicles may cost more

Consumers who choose energy-saving cars will be charged less tax, he said.


Piengjai Kaewsuwan, president of the Thai Automobile Industry Association and chairwoman of the AseanAutomotive Federation, said the new tax might make some types of vehicles slightly more expensive, such as pickup trucks and commercial vehicles.

If the tax rate is raised by 5-10 per cent, the retail price might be raised by 2 per cent, she said.

Nevertheless, she insisted the new excise structure would not affect the overall car industry.

Carmakers have adjusted to the government's new policy and the public should benefit, since automakers will produce better-quality vehicles that emit less carbon dioxide, she said.

This is in line with the world trend, which has tilted towards energy-efficient vehicles that are more friendly to environment, she said.

Piengjai said the Thai automotive industry should resume its growth this year, thanks to the improvement of the overall economy. The government expects gross domestic product to grow by 3-4 per cent this year.

The annual Bangkok Inter-national Motor Show, which kicks off late this month, will confirm if the economy is really recovering, she said.

[IMHO]

If the tax rate is raised by 5-10 per cent, the retail price might be raised by 2 per cent, she said.

A mathematician

The annual Bangkok Inter-national Motor Show, which kicks off late this month, will confirm if the economy is really recovering, she said.

And an optimist

[IMHO]

What about Benz and Porsche will they increase ? We might change one of the cars soon.

Cars with engines <3000cc and currently making > 220HP will benefit. Those >3000cc or <220HP won't.

[Pib]

No one should worry because the govt says not to worry about it...vehicle sales won't be hurt much and the price won't increase much...see below. I'm now relieved.

New emissions tax won't hurt car sales much: minister

THE NATION March 17, 2015 1:00 am

INDUSTRY Minister Chakramon Phasukavanich has said the restructuring of automobile excise tax to include an emissions levy that will become effective from January 1 next year should not have a significant impact on people's decisions to buy a new car.

Consumers should not worry too much since the new tax rates will apply only to new models, he said yesterday.

Piengjai said the Thai automotive industry should resume its growth this year, thanks to the improvement of the overall economy. The government expects gross domestic product to grow by 3-4 per cent this year.

The annual Bangkok Inter-national Motor Show, which kicks off late this month, will confirm if the economy is really recovering, she said.

And from looking at a Bangkok Post 6 Apr 15 article the upcoming motor show the good minister referred to missed its target of 40K vehicle bookings. The number of bookings was 6% less than last year's show.

Now I'm confused...what the good minister said didn't come true....now I'm wondering sales will decrease next year because of higher vehicle prices. But the govt said not to worry about it.

[IMHO]

I feared that it would be more complicated than I assumed ... That means that my estimates could be a bit on the low side? or completely rubbish!

It's really hard to say... manufacturers have known this was coming for a long time... they also know what price points they can move inventory at.. So for all we know, it might already be "priced in" to some degree, at least.

Key points:

1. A new tax system is not going to suddenly mean people have more money to spend.

2. Car makers still need to move inventory

3. There are HUGE profits in cars

A simple decrease of marketing budget could totally offset it all

Edited June 26, 2015 by IMHO

[jacko45k]

What about Benz and Porsche will they increase ? We might change one of the cars soon.

I believe Bentley and Ferrari will be available at special prices (if you are a Thai yuppie).

[IMHO]

What about Benz and Porsche will they increase ? We might change one of the cars soon.

I believe Bentley and Ferrari will be available at special prices (if you are a Thai yuppie).

You believe wrong

[stament]

Can we estimate by how much the top of the range new pajero will increase by as a result of this change in tax? and if so can some clever person please advise.

thanks

[IMHO]

Can we estimate by how much the top of the range new pajero will increase by as a result of this change in tax? and if so can some clever person please advise.

thanks

There's so many variables - not just the tax % increase. Figure somewhere between 100K and 200K.

[Ace of Pop]

Will E85 have any tax benefits ,E.U. Seem to be targeting Diesel for private use.

[tomwct]

This is how Big Governments Run! Socialists Governments, like the EU and it's fellow members Love Taxes because they do not create revenue! Thailand on the other hand has been so corrupt, very few pay taxes, so the VAT and these other taxes pay for the government and their corruption

[IMHO]

Can we estimate by how much the top of the range new pajero will increase by as a result of this change in tax? and if so can some clever person please advise.

thanks

There's so many variables - not just the tax % increase. Figure somewhere between 100K and 200K.

Actually, the PJS 2.4 just slips under the 200gm/KM threshold, so probably more like 100-130K increase..

[stament]

wow quite a lot 100+