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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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