BMA to levy tax on petrol sales

[Lite Beer]

BMA to levy tax on petrol sales

BANGKOK, 11 October 2015 (NNT) – The Bangkok Metropolitan Administration (BMA) will begin levying a five-percent duty on petrol and natural gas for vehicle from 15 October onwards.

Deputy Bangkok Governor Chumpol Samphaopol said all gas station operators across the capital city were to submit the reports of their monthly sale volumes to district offices, or the BMA Finance Department within 31 October. The operators are required to pay the tax within 15 November.

Operators failing to inform authorities of their monthly sales or fail to pay the required amount of tax will have to shell out an extra amount of 1.5 percent of the duty they are supposed to pay. Those failing to submit their sale reports within the deadline will face a fine of 10,000 baht or a jail term of three months or both.

Gas operators in Bangkok sell around 10 billion liters of gasoline per year. The new tax scheme will enable the capital city to earn another 500 million baht in revenue.

-- NNT 2015-10-11

[Thai at Heart]

Huh? The BMA can just levy a business tax just like that? Amazing.

[impulse]

Dollars to donuts commuters will tank up just outside the invisible line demarcating the BMA's control, and the petrol stations within the line will get the rules changed before they go broke.

Always amazed to see a 30 minute line at the pumps the day before the price is going up a satang or two.

[arfurcrown]

Thai at Heart. post # 2

Huh? The BMA can just levy a business tax just like that? Amazing.

I think you'll find it is a similar system to that in America where there are state taxes levied on assorted services and product sales.

http://taxfoundation.org/article/state-and-local-sales-tax-rates-2014

[noosard]

Encourage the use of diesel

[waldroj]

Whilst this is just about to be introduced in BKK, apparently the tax is already being collected in most provinces around the country!

We are being told that this new “tax” will enable the city to earn another 500 million baht in revenue. But, the NNT article does not say where that money will go or how it will be spent.

Will it be spent on road improvement works or will it go straight into BMA coffers for general use? Or, maybe, we should not ask too many questions about it!

What is also unclear is just who will pay the increase, the gas station operators (in an effort to keep customers) or the motorists (through higher prices at the pump)?

As is typical of NNT reporting, the reader is left with more questions than answers.

[Thian]

And the 500 million will be used to improve road-safety?

[Seastallion]

500 000 000 is 5% of 50 000 000 000.

10 000 000 000 litres.

Are they saying petrol costs 5 baht per litre? Or is the tax just on the profit margin and that the margin is 5 (which is a steep margin)?

Or is my math completely stuffed up?

Or, as usual, Thai reporting gets all the zeros stuffed up?

No matter, 0.5, 5 or 50 baht per litre, it's wrong.

Help me someone with a clearer head.

[Thai at Heart]

Thai at Heart. post # 2

Huh? The BMA can just levy a business tax just like that? Amazing.

I think you'll find it is a similar system to that in America where there are state taxes levied on assorted services and product sales.

http://taxfoundation.org/article/state-and-local-sales-tax-rates-2014

Well that's the whole point. Normally Bangkok doesn't have the right to levy such specific taxes as this. Maybe they should put a toll on every rice truck exiting issan and entering Bangkok.

[Oziex1]

And the 500 million will be used to improve road-safety?

Of course it will those in the BMA will be able to buy new Mercedes and be safer on the roads.

[ExpatOilWorker]

500 000 000 is 5% of 50 000 000 000.

10 000 000 000 litres.

Are they saying petrol costs 5 baht per litre? Or is the tax just on the profit margin and that the margin is 5 (which is a steep margin)?

Or is my math completely stuffed up?

Or, as usual, Thai reporting gets all the zeros stuffed up?

No matter, 0.5, 5 or 50 baht per litre, it's wrong.

Help me someone with a clearer head.

500 000 000 is 5% of 50 000 000 000. Since when?

But, I agree the math is a bit screwed up since they are only collecting 0.05 baht/litre.

[ezzra]

Encourage the use of diesel

Yes indeed, good idea, and in particular VW diesel.....

[Jonmarleesco]

'The new tax scheme will enable the capital city to earn another 500 million baht in revenue.' To do spend on what - lining pockets, apart?

[gandalf12]

And the 500 million will be used to improve road-safety?

Dont be silly of course it wont but it will provide a nice holiday for someone