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Customs defend right to charge air passenger 20,000 baht for tax on designer bag


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Customs defend right to charge air passenger 20,000 baht for tax on designer bag

 

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Picture: Manager Online

 

The Customs Department has responded to claims that they fleeced an air passenger out of 20,000 baht by charging tax on a Chanel bag.

 

The passenger had gone on Facebook to claim that they took the bag with them out of Thailand on a trip abroad and were merely returning with it.

 

But customs said yesterday that they were within their rights to charge tax and VAT totaling 20,000 baht on the item.

 

They said that the passenger had been to Hong Kong and returned on flight CX 615. They had not complained at the time and fully assented to being charged the tax.

 

They claimed that the passenger told them that the bag was a gift from a foreign friend so they did not have a receipt.

 

They didn't know why they had changed their tune and posted on Facebook.

 

Customs said that a "hologram" sticker was examined within the bag indicating its provenance.

 

They said that tax was paid because the bag was new.

 

Source: Manager Online

 
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The obvious solution is to minimize the taxes/duty on these sorts of items so as to equalize the in-country/external price. Then it's a win-win: more VAT, more foreigners shopping.

 

But the downside is that Prawit would have had to pay double for his watches?

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Just now, mtls2005 said:

The obvious solution is to minimize the taxes/duty on these sorts of items so as to equalize the in-country/external price. Then it's a win-win: more VAT, more foreigners shopping.

 

But the downside is that Prawit would have had to pay double for his watches?

Why would they have to lower taxes on luxury articles usually bought by the rich... I thought you were a defender of the people ?

 

Taxes on high end luxury items are used to pay for stuff for the poor why decrease this income stream ? Don't the rich already have enough ? 

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11 minutes ago, robblok said:

Taxes on high end luxury items are used to pay for stuff for the poor why decrease this income stream ? Don't the rich already have enough ? 

Admirable and idealistic view, small problem is it never gets to the poor, surely you have noticed that by now?

Helps with the down payment on submarines and the like, also taxes pay the Police & "government salaries, least the funds are not being wasted! :laugh:

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15 minutes ago, mtls2005 said:

The obvious solution is to minimize the taxes/duty on these sorts of items so as to equalize the in-country/external price. Then it's a win-win: more VAT, more foreigners shopping.

 

But the downside is that Prawit would have had to pay double for his watches?

Actually the tax on luxury items is one of the few things where i think Thailand is doing it right. A Ferrari or a designer handbag for 100k+ THB are definitely not things anybody "needs", these are pure luxury items. So they can go ahead and add 300% tax on designer handbags ;)

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Just now, CGW said:

Admirable and idealistic view, small problem is it never gets to the poor, surely you have noticed that by now?

Helps with the down payment on submarines and the like, also taxes pay the Police & "government salaries, least the funds are not being wasted! :laugh:

It gets to the poor, it gets to everyone how do you think healthcare in Thailand is funded.. ]

 

Decreasing Tax income certainly is not the way to go.. not on luxury items like that. Thailand has a to low tax income as it is. Now if they were to decrease taxes on things the poor actually buy I am all for it but I don't see the poor benefit from lowering tax on real expensive bags.

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I think most of the luxury items find their way into the country without being subject to any VAT, duty, excise etc. This is because wealthy people can avoid the pesky Customs chaps, if only by discarding the box, bag, receipt, plastic, or by just being above the law. (This is forgetting about the lucrative trade in pre-order bags facilitated by TG cabin staff who operate in the open and supplement their monthly incomes by a factor of three or four X.)

 

Very few people get tagged at Customs so the net inflow is close to zero, and no 7% VAT of course.

 

The relatively large net price difference (25% - 100%) encourages shopping in other countries.

 

So, I guess my point was that by decreasing the incentives to self-import, by equalizing the price, by reducing duty/excise, you might actually increase net inflows by capturing VAT? And more foreigners might choose Bangkok as a shopping destination.

 

16 minutes ago, jackdd said:

A Ferrari or a designer handbag for 100k+ THB are definitely not things anybody "needs",

 

Honestly can't remember the last time I saw a chap driving through the green channel?

 

But the fraud involved in the luxury automobile situation might also be addressed by minimizing the price difference?

 

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I'm not a friend of customs taxes slapped on occasional private imports.

 

Just imagine the amount of reciepts one would have to carry, as many travelers' shoes or phone alone already exceed 20.000 baht in value.

The allowed goods value needs to be higher and the allowed tax-free amount per person needs to be higher as well.

 

Then, many customs regulations on food & beverages are just modern day prohibition, it's a just a government racket on goods that often are not even available in the country taxing them, which is very unfair.

 

Finally, when self-imports are done because of a sustantial price difference, the first thing to look at would be the reasons why the domestic market has been distorted in the first place ?

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37 minutes ago, mtls2005 said:

I think most of the luxury items find their way into the country without being subject to any VAT, duty, excise etc. This is because wealthy people can avoid the pesky Customs chaps, if only by discarding the box, bag, receipt, plastic, or by just being above the law. (This is forgetting about the lucrative trade in pre-order bags facilitated by TG cabin staff who operate in the open and supplement their monthly incomes by a factor of three or four X.)

 

Very few people get tagged at Customs so the net inflow is close to zero, and no 7% VAT of course.

 

The relatively large net price difference (25% - 100%) encourages shopping in other countries.

 

So, I guess my point was that by decreasing the incentives to self-import, by equalizing the price, by reducing duty/excise, you might actually increase net inflows by capturing VAT? And more foreigners might choose Bangkok as a shopping destination.

 

 

Honestly can't remember the last time I saw a chap driving through the green channel?

 

But the fraud involved in the luxury automobile situation might also be addressed by minimizing the price difference?

 

What you are saying could work.. or NOT... but maybe worth investigating. My point was that we should not lower the tax income that is there. If anything there is already a shortage of tax income. 

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1 hour ago, jackdd said:

Actually the tax on luxury items is one of the few things where i think Thailand is doing it right. A Ferrari or a designer handbag for 100k+ THB are definitely not things anybody "needs", these are pure luxury items. So they can go ahead and add 300% tax on designer handbags ;)

"From those according to their handbags; to those according to their greed." - J Stalin

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2 hours ago, webfact said:

The Customs Department has responded to claims that they fleeced an air passenger out of 20,000 baht by charging tax on a Chanel bag.

Well, they have to protect the local fake Chanel bag industry and sales... Where would we come to if anyone could just waltz into Thailand with the genuine products? It would only make the fakes look bad. :ph34r:

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2 hours ago, Tilacme said:

I am looking at this in conjunction with the report on the 8th march where officials said "it was only a suggestion"

 

 

That is true, but I think in the same article it states that it is voluntary to declare valuables so that scenarios like this don't have to happen.

 

Ie, the passenger conceding to pay tax according to customs, and the passenger claiming that they left Thailand with it in their version of events.

 

Declaration of the handbag would have sorted the argument out, so in a case like this, IMO, it is actually a good thing.

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2 hours ago, robblok said:

Why would they have to lower taxes on luxury articles usually bought by the rich... I thought you were a defender of the people ?

 

Taxes on high end luxury items are used to pay for stuff for the poor why decrease this income stream ? Don't the rich already have enough ? 

I know loads of Thai girls who went abroad to buy one, or let another Thai bring those bags.

 

And they are not rich at all, just secretary or office employee's who save many months for them.

 

Those bags are cheaper abroad and best of all they don't have to deal with the arrogant thai staff in those shops.

Even in singapore they are cheaper plus it's much more fun for them to tell they bought that in Singapore instead of Paragon.

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28 minutes ago, StayinThailand2much said:

Well, they have to protect the local fake Chanel bag industry and sales... Where would we come to if anyone could just waltz into Thailand with the genuine products? It would only make the fakes look bad. :ph34r:

Thai girls all have the same Louis vuiton purse, in exact the same color. I've been to parties where they had 4-5 of the same ones stalled on the couch next to eachother...And they are not rich girls at all, for them it's the highest achievable thing to show at work, they have a real one of course.

 

Chanel bags though is another story, they cost3-5 times more and you have to go in the queue to be allowed in the shop where you get a personal sales dedicated...only 1-2 customers are allowed in the shop at one time so there's a queue outside all day.

 

But lately i don't see the fakes anymore in BKK, few years ago they were everywhere.

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4 hours ago, webfact said:

The Customs Department has responded to claims that they fleeced an air passenger out of 20,000 baht by charging tax on a Chanel bag.

I trust she/he got a receipt. Customs is about 3rd in the Thai corruption stakes after the RTP and Education Dept.

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4 hours ago, CGW said:

Admirable and idealistic view, small problem is it never gets to the poor, surely you have noticed that by now?

Helps with the down payment on submarines and the like, also taxes pay the Police & "government salaries, least the funds are not being wasted! :laugh:

 

Some of it gets to the poor, did you think that just as much would if there was less of it?

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3 hours ago, Tilacme said:

I am looking at this in conjunction with the report on the 8th march where officials said "it was only a suggestion"

 

 

It was only as suggestion, it is not compulsory but this woman would not have been able to do that because, according to the Customs officer, she had been given the bag by a foreign friend and did not have the receipt, presumably because she had been given it outside the country.   If she had been given it in Thailand by her foreign friend then she could have declared it on leaving which would have been sensible for such an expensive, new item.

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4 hours ago, CGW said:

Admirable and idealistic view, small problem is it never gets to the poor, surely you have noticed that by now?

Helps with the down payment on submarines and the like, also taxes pay the Police & "government salaries, least the funds are not being wasted! :laugh:

When someone buys a luxury car and pays the "Luxury" tax that money goes to state coffers, when the poor as well as the rich pay the same price for the fuel (inc tax) to go into their car or truck, not much tax reaches state coffers, but the rich person using their luxury car will be paying exactly the same as the poor. Collection of luxury tax is a good thing on those vehicles   

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4 hours ago, jackdd said:

Actually the tax on luxury items is one of the few things where i think Thailand is doing it right. A Ferrari or a designer handbag for 100k+ THB are definitely not things anybody "needs", these are pure luxury items. So they can go ahead and add 300% tax on designer handbags ;)

Whoa .... hold up.

 

if bought in another country, the tax may have been paid as required

if a gift, the tax may have been paid (I mean, if someone gives you a watch as a birthday present, would you ask if tax was paid on it?)

if duty free... well... it’s duty free

 

how can any country charge tax on an item, unless they can demonstrate that tax has not been paid in another jurisdiction?

 

luxury taxes are BS.... if I earned enough money to buy a luxury good, then I would probably (? ) have paid a higher income tax... so it’s a double tax

 

for poor unfortunates.... tax’s on essentials... like bread and water (and noodles) should be reduced or removed

 

the odd thing here, worth questioning, is simply the change of story.... but.... intimidation or whatever, might effect the origional story

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2 minutes ago, farcanell said:

Whoa .... hold up.

 

if bought in another country, the tax may have been paid as required

if a gift, the tax may have been paid

if duty free... well... it’s duty free

 

how can any country charge tax on an item, unless they can demonstrate that tax has not been paid in another jurisdiction?

Every country does this, this is not exclusive to Thailand.

If i buy whatever item (it it's above a certain price) in for example Thailand and bring it to for example Germany i have to pay tax on it in Germany.

 

2 minutes ago, farcanell said:

luxury taxes are BS.... if I earned enough money to buy a luxury good, then I would probably (? ) have paid a higher income tax... so it’s a double tax

The problem is rich people don't pay tax (or way less than they should), so an extra tax on luxury items is ok, this way they have to pay.

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