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

[Briggsy]

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

IMHO

The formula that you quote (the one that magics 50% into 111.1% etc) only applies to excise tax on IMPORTS. For cars assembled here, the straight percentage applies (plus Interior tax plus VAT).

[stament]

So what price will this make the top of the range Everest, Pajero & Fortunner that are frequently discussed on the forum? Does anyone know?

I must admit I am not clear but it would be interesting to know.

I am guessing asking a dealer wouldn't get the desired answer ;-)

[Briggsy]

Everest, Pajero and Fortuner all in PPV category presumably

2015 Excise Duty 20%

2016 Excise Duty either 25% or 30% depending on emissions, the cut-off is 200 g/km.

2016 Excise Duty for PPV's over 3.25 litres is 50% but from memory I don't recall any of the above 3 models having a model with that engine.

[IMHO]

No manufacturers have announced their 2016 prices. The only "semi official" info I've seen are these two:

Source: http://community.headlightmag.com/index.php?topic=46812.0

Source: http://www.matichon.co.th/news_detail.php?newsid=1444814264

That should be a good enough guide for the other brands too..

Edited October 24, 2015 by IMHO

[IMHO]

IMHO

The formula that you quote (the one that magics 50% into 111.1% etc) only applies to excise tax on IMPORTS. For cars assembled here, the straight percentage applies (plus Interior tax plus VAT).

You might very well be right.. now I need to do some research to see if the proposal to apply excise tax on retail prices, rather then wholesale prices got approved.. It's been over 3 years since I last read through all the legislation

Edited October 24, 2015 by IMHO

[Briggsy]

IMHO

The formula that you quote (the one that magics 50% into 111.1% etc) only applies to excise tax on IMPORTS. For cars assembled here, the straight percentage applies (plus Interior tax plus VAT).

You might very well be right.. now I need to do some research to see if the proposal to apply excise tax on retail prices, rather then wholesale prices got approved.. It's been over 3 years since I last read through all the legislation

Previously excise duty was applied to the value at the factory gate.

I was unaware of any changes to this although I have not looked in detail. It would be a good earner if they have indeed changed that as they would be able to apply excise duty to all dealer mark-ups and all distribution costs.

I had better buy a car quick.

[JaseTheBass]

+ 200k for a Camry Hybrid?? So much for the govt's aim of targeting those vehicles with higher C02 emissions.

[DavisH]

The government better not complain about dropping vehicle sales then.....not everyone want's / needs to drive an ecocar. (they are convenient around town though:) The above-mentioned figures would further push me towards a ranger, with its lover increase, instead of an everest/pjs, etc.

[DavisH]

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..

Yes, I was told about a 5% increase for the pjs due to its emissions.

[sandyf]

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.

The theory is that you extract the text and then translate it. I have tried in the past with an OCR tool but just got gibberish. I think that some of the language characters were distorted on extraction.

"i2OCR is a free online Optical Character Recognition (OCR) that extracts text from images so that it can be edited, formatted, indexed, searched, or translated."

[pj123]

I was told by my local Mitsu dealer that they would pay the additional tax if they deliver in 2016 a top of the range PJS due for delivery in December.

That would be way too generous of them and I wonder if a deal is being negotiated between the motor trade and the government to delay the tax changes.

[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..

Yes, I was told about a 5% increase for the pjs due to its emissions.

The Fortuner 2.4L base model should also slip under the 200gm threshold, and yet, that Toyota dealer sign photographed above still sows that as translating to 100K+

Like I keep saying though, there's a lot of variables. Some manufacturers might take a profit hit to retain keener pricing - others might update models with a few extras to help offset the rise. Others might even do a double whammy and include their annual 20K-50K price increase as well. Who knows, maybe some models have already had some of the tax rise "priced in" and don't move much at all?

There's obviously a lot of strategy at play - otherwise the manufacturers would have made official price announcements to get bookings in the door now..

[IMHO]

I was told by my local Mitsu dealer that they would pay the additional tax if they deliver in 2016 a top of the range PJS due for delivery in December.

That would be way too generous of them and I wonder if a deal is being negotiated between the motor trade and the government to delay the tax changes.

Perhaps the Excise tax dept. will work on booking dates rather than delivery dates? There's a lot of expectation in the market that's what's going to happen (and that's the way the first car buyer scheme worked), but I'm yet to see anything official along those lines.

[IMHO]

+ 200k for a Camry Hybrid?? So much for the govt's aim of targeting those vehicles with higher C02 emissions.

The Camry Hybrid goes from 10% to 20% excise tax, because it's over the 100gm/KM threshold (120'ish). The Accord Hybrid is right on the cusp at exactly 100gm/KM, so should avoid a price rise.

[Gary A]

I have read a number of articles comparing diesel and petrol engines. Other than diesel engine soot, it appears that diesels are better for the environment. Apparently now the new diesels have some sort of filters that reduce the carbon soot emissions.

It appears that governments are all jumping on the carbon dioxide from vehicles but Indonesia continues to poison Southeast Asia with their smoke from burning. Combined with the pollution from volcanoes and methane, I wonder how vehicle emissions compare with those sources.

It looks to me that this carbon dioxide thing is jut a government tool to collect more taxes. I do understand that weather patterns are changing but is it a natural mother earth thing or not. Plants like carbon dioxide so more means higher crop yields.

[IMHO]

I have read a number of articles comparing diesel and petrol engines. Other than diesel engine soot, it appears that diesels are better for the environment. Apparently now the new diesels have some sort of filters that reduce the carbon soot emissions.

It appears that governments are all jumping on the carbon dioxide from vehicles but Indonesia continues to poison Southeast Asia with their smoke from burning. Combined with the pollution from volcanoes and methane, I wonder how vehicle emissions compare with those sources.

It looks to me that this carbon dioxide thing is jut a government tool to collect more taxes. I do understand that weather patterns are changing but is it a natural mother earth thing or not. Plants like carbon dioxide so more means higher crop yields.

One factor that's never taken into account in the Diesel vs Gasoline debate is: just how many trees and energy are saved because people need less bank notes to pay for fuel

[tonytong]

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.

The theory is that you extract the text and then translate it. I have tried in the past with an OCR tool but just got gibberish. I think that some of the language characters were distorted on extraction.

"i2OCR is a free online Optical Character Recognition (OCR) that extracts text from images so that it can be edited, formatted, indexed, searched, or translated."

thanks, very useful information.