Thai Customs Department to cut import duty on luxury items

[webfact]

Customs Department to Cut Import Duty on Luxury Items
BY JACOB MASLOW



BANGKOK: -- Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending. The department will be holding a meeting with the private sector in January to sort out the details of the tariff reduction before forwarding the details to Somchai Sujjapongse, finance permanent secretary, for consideration.

Kulit Sombatsiri, director general of the Customs Department, stated that the new duty level must not be detrimental to domestic manufacturers.

The department’s move comes after several requests from the private sector to further promote Thailand as a shopping paradise for tourists while also encouraging local consumers to shop at home instead of traveling abroad.

Full story: http://ethailand.com/business-news/customs-department-to-cut-import-duty-on-luxury-items/1222/

-- eThailand 2016-01-07

[jaywalker]

I'm no EJ, but cutting taxes is a good idea, especially when tax money is normally used in the most inefficient ways possible.

[Seastallion]

Encouraging the sale of foreign goods, and making things that rich people buy cheaper.

What's the bet that the wife of the guy who made this decision has her eyes on a new handbag? Because it's not really a progressive move for the country in general. Ordinary Thai will benefit not one iota.

[ukrules]

This actually makes sense.

[tbthailand]

Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending.

so I'm a tourist and when I come to Thailand, I am now going to buy luxury goods which even after the cut I could purchase in my own country much more cheaply and this is going to boost my spending as a tourist...

Gotta disagree with ol' ukrules (above), this makes no sense whatsoever... or at least the logic for the decision makes no sense...

That said, it'll make moving up to BMWs more affordable for all the locals around here with the orange kubota engine proudly displayed on the front of their current set of wheels...

[marquess]

If it makes wine cheaper I won't be complaining.

[jaywalker]

Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending.

so I'm a tourist and when I come to Thailand, I am now going to buy luxury goods which even after the cut I could purchase in my own country much more cheaply and this is going to boost my spending as a tourist...

Gotta disagree with ol' ukrules (above), this makes no sense whatsoever... or at least the logic for the decision makes no sense...

That said, it'll make moving up to BMWs more affordable for all the locals around here with the orange kubota engine proudly displayed on the front of their current set of wheels...

Gotta disagree w/ you TBT.

ANY, and EVERYTHING that keeps money out of a corrupt government's (all are corrupt or at best inept) pocket, and leaves it with the guy who earned his money is a good thing.

[tbthailand]

Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending.

so I'm a tourist and when I come to Thailand, I am now going to buy luxury goods which even after the cut I could purchase in my own country much more cheaply and this is going to boost my spending as a tourist...

Gotta disagree with ol' ukrules (above), this makes no sense whatsoever... or at least the logic for the decision makes no sense...

That said, it'll make moving up to BMWs more affordable for all the locals around here with the orange kubota engine proudly displayed on the front of their current set of wheels...

Gotta disagree w/ you TBT.

ANY, and EVERYTHING that keeps money out of a corrupt government's (all are corrupt or at best inept) pocket, and leaves it with the guy who earned his money is a good thing.

I understand. And it is worthwhile to discuss the import duties and whether or not they are appropriate, have the intended effect, etc.

I'm just saying that this guy's argument is 100% disingenuous deflection... dropping the import duties on luxury goods in Thailand will certainly help the people in Thailand who consume luxury goods, but to claim that this will increase tourist spending seems to stretch the logic beyond reasonable limits...

[BSJ]

The noodle lady up on the main road will be un-controllable with joy once this news gets to her!

[CaptHaddock]

Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending.

so I'm a tourist and when I come to Thailand, I am now going to buy luxury goods which even after the cut I could purchase in my own country much more cheaply and this is going to boost my spending as a tourist...

Gotta disagree with ol' ukrules (above), this makes no sense whatsoever... or at least the logic for the decision makes no sense...

That said, it'll make moving up to BMWs more affordable for all the locals around here with the orange kubota engine proudly displayed on the front of their current set of wheels...

Gotta disagree w/ you TBT.

ANY, and EVERYTHING that keeps money out of a corrupt government's (all are corrupt or at best inept) pocket, and leaves it with the guy who earned his money is a good thing.

I understand. And it is worthwhile to discuss the import duties and whether or not they are appropriate, have the intended effect, etc.

I'm just saying that this guy's argument is 100% disingenuous deflection... dropping the import duties on luxury goods in Thailand will certainly help the people in Thailand who consume luxury goods, but to claim that this will increase tourist spending seems to stretch the logic beyond reasonable limits...

Of course, the point is to give a further tax break to the rich who are the supporters of the junta. The tax break could easily be restricted to tourists by making it a refund like the VAT refund for which you have to show a foreign passport. This tax break will be for all customers, most of whom will be rich Thais.

[Kerryd]

If they dropped the tax on Harleys and parts I'd order a lot more stuff. I just bought a new set of highway bars a couple weeks ago and the taxes/duty/tariffs came to 50% of the cost of the item !

[leeneeds]

It is about competition with Vietnam , Cambodia , Laos, Myanmar all have growth in their tourist sector and a lot of those tourists are now bypassing Thailand , a move to keep the numbers up, business is business so what ever edge you can get over the opostition GO FOR IT .

[Prbkk]

Easily and better managed via a streamlined VAT refund system, eg the one that works seamlessly in Europe. The system in Thailnd is Byzantine . Of course it's aimed at wealthy Thais and for the benefit of the mates who own the luxury outlets....

[Thian]

Thai airways should have luggage allowment of 50 kg a person.

The Baht has to be devaluated 25%.

Stop with import taxes at all.

Then the tourists will be flocking to shop here.

If i shop online in Europe then 90% of the goods are cheaper, better quality and they bring it to my home. Try beating that.

[robblok]

This is great news Thailand has too many import taxes and because of it crap products get sold good because the good quality is too expensive. By lifting these barriers everyone will benefit as the Thai companies will be forced to up their game and make better products. So even the cheaper products will become better. Win for everyone except the companies who gotten away with crap products.

This just increases the free market and is good.

[madmitch]

They have to do something to fill all the new shopping malls. Many tourists do spend money on high end goods.

But a couple of questions: what are the current tax rates and what is the definition of a luxury item?

[zappalot]

What I do not understand: Products made in Thailand, around Bangkok are more expensive in Bangkok than in Germany, e.g. HDD or cameras... Yet there are no import taxes from any industrial estate around Bangkok to Bangkok... Also warranty here 1 year, germany 2 years. Thailand 7% VAT, Germany 19%, higher social security funds to be paid in Germany... But items are cheaper there...

[weegee]

If they dropped the tax on Harleys and parts I'd order a lot more stuff. I just bought a new set of highway bars a couple weeks ago and the taxes/duty/tariffs came to 50% of the cost of the item !

True...imagine if after the ALL import taxes were lowered...The innovations from seeing and using modern ideas, would bring Thailand forward in leaps and bounds.

Not just LUXURY items....bring the import taxes down on everything....

[JOC]

This is great news Thailand has too many import taxes and because of it crap products get sold good because the good quality is too expensive. By lifting these barriers everyone will benefit as the Thai companies will be forced to up their game and make better products. So even the cheaper products will become better. Win for everyone except the companies who gotten away with crap products.

This just increases the free market and is good.

In all your excitement, I am sure, you are going to buy your wife a Louis Vuitton bag (only 12.000 after the 30% tax break). That was so cheap, so why not throw in a bottle of perfume. May I suggest Coco Chanel , 50 ml will in the future only cost 3.000 !!

Happy times indeed...............

The only "luxury" item affordable for most Thais are their car/pickup truck, which since a week has become very much more expensive..............!!

Robin Hood in reverse !!

[worgeordie]

Looks like they are pandering to the 1% again.

regards Worgeordie

[robblok]

This is great news Thailand has too many import taxes and because of it crap products get sold good because the good quality is too expensive. By lifting these barriers everyone will benefit as the Thai companies will be forced to up their game and make better products. So even the cheaper products will become better. Win for everyone except the companies who gotten away with crap products.

This just increases the free market and is good.

In all your excitement, I am sure, you are going to buy your wife a Louis Vuitton bag (only 12.000 after the 30% tax break). That was so cheap, so why not throw in a bottle of perfume. May I suggest Coco Chanel , 50 ml will in the future only cost 3.000 !!

Happy times indeed...............

The only "luxury" item affordable for most Thais are their car/pickup truck, which since a week has become very much more expensive..............!!

Robin Hood in reverse !!

Again you demonstrated your lack of knowledge.. the reason so many crap products are available here is because of the high price of good quality. The sooner there are less import barriers the sooner the masses have access to better quality products. Not all luxury products are like the ones you describe. I am talking about other quality products like imported quality products. Protectionism is never good for the normal man. For instance beer.. because of the protections and huge import tariffs there is only cheap crap beer (i dont drink much so I dont care but its a good example). So im all for removing trade barriers and making quality available to the masses. However the Thai monopoly holding companies wont like it.

And those prices you post seem reasonable.. I guess i can give those kind of gifts now easier to all my giks and mia nois too. Happy times indeed while you struggle to survive on your meager salary and support the red cause. Must be bad for you since your friend in Dubai stopped his payments to you. Yet still you try to demonstrate your loyalty to him.

(first part of the post was in serious just for those who don't understand sarcasm)

[sanukjim]

Thailand’s Customs Department is preparing to make a 30% cut to import duties on luxury items in hopes of boosting tourist spending.

so I'm a tourist and when I come to Thailand, I am now going to buy luxury goods which even after the cut I could purchase in my own country much more cheaply and this is going to boost my spending as a tourist...

Gotta disagree with ol' ukrules (above), this makes no sense whatsoever... or at least the logic for the decision makes no sense...

That said, it'll make moving up to BMWs more affordable for all the locals around here with the orange kubota engine proudly displayed on the front of their current set of wheels...

Gotta disagree w/ you TBT.

ANY, and EVERYTHING that keeps money out of a corrupt government's (all are corrupt or at best inept) pocket, and leaves it with the guy who earned his money is a good thing.

The corruption in the government will not stop or even be slowed down by this action.Those that enjoy the moneys raked off to enhance their lifestyle wont miss any payments as it will come from other sources,.This proposal is for the elite only.It is amassing that here in Thailand the VERY RICH families will not pay the going price for luxury items or high dollar cars,They will go out of their way to slip a bribe payment to obtain say a car.One of the reasons is the Thais idea of face,if they pay the legal price then they are loosing face to their fellow elites for not having the sources that the others have.That is why if you remember last year when that transporter burned up with 4 or 5 luxury cars on it.One of the elite let it be known they was being taken to his property but then denied it later when questioned by the media.He lost his 40 or 50 million baht on the deal and it did not bother him publicly as it gained much face that h could loose this The average Thai will not benefit from this and even the tourist can buy luxury items in duty free much cheaper then at the high dollar stores here..

[Inn Between]

If it makes wine cheaper I won't be complaining.

Yes, it would be nice if they'd given some idea about the type of items that are considered luxurious. I certainly consider a bottle of very good red a luxury. There was nothing in the linked article saying what type of stuff is being considered.

[crazykopite]

A 30% reduction will change nothing as Thailand import taxes are way over the top , even with the proposed cut most of the luxury items are still cheaper in the Western world !!!!! An example is a pair of Timberland boots in the UK is half the price as Thailand and that is with the UKs 20% vat .

[dageurreotype]

If it makes wine cheaper I won't be complaining.

It won't.

[skildpadden]

As one poster said, if it makes wine cheaper I am all for it.

However there are some more important things, where you could reduce tax, than French handbags and German cars.
One example could be the taxes on chemotherapy medicine making treatment out of reach for some patients. Reducing the import taxes would make treatment available to more - and hey, perhaps there might also be some medical tourists who would fly in for cheaper treatment and everybody wins.

[JOC]

This is great news Thailand has too many import taxes and because of it crap products get sold good because the good quality is too expensive. By lifting these barriers everyone will benefit as the Thai companies will be forced to up their game and make better products. So even the cheaper products will become better. Win for everyone except the companies who gotten away with crap products.

This just increases the free market and is good.

In all your excitement, I am sure, you are going to buy your wife a Louis Vuitton bag (only 12.000 after the 30% tax break). That was so cheap, so why not throw in a bottle of perfume. May I suggest Coco Chanel , 50 ml will in the future only cost 3.000 !!

Happy times indeed...............

The only "luxury" item affordable for most Thais are their car/pickup truck, which since a week has become very much more expensive..............!!

Robin Hood in reverse !!

Again you demonstrated your lack of knowledge.. the reason so many crap products are available here is because of the high price of good quality. The sooner there are less import barriers the sooner the masses have access to better quality products. Not all luxury products are like the ones you describe. I am talking about other quality products like imported quality products. Protectionism is never good for the normal man. For instance beer.. because of the protections and huge import tariffs there is only cheap crap beer (i dont drink much so I dont care but its a good example). So im all for removing trade barriers and making quality available to the masses. However the Thai monopoly holding companies wont like it.

And those prices you post seem reasonable.. I guess i can give those kind of gifts now easier to all my giks and mia nois too. Happy times indeed while you struggle to survive on your meager salary and support the red cause. Must be bad for you since your friend in Dubai stopped his payments to you. Yet still you try to demonstrate your loyalty to him.

(first part of the post was in serious just for those who don't understand sarcasm)

>> Happy times indeed while you struggle to survive on your meager salary and support the red cause. <<

I live in a house on the beach in Hua Hin, you live in a moo ban in the outskirts of BKK. So it seems like your contributions to the Elite is hurting you more, than mine to Mr T............

[robblok]

This is great news Thailand has too many import taxes and because of it crap products get sold good because the good quality is too expensive. By lifting these barriers everyone will benefit as the Thai companies will be forced to up their game and make better products. So even the cheaper products will become better. Win for everyone except the companies who gotten away with crap products.

This just increases the free market and is good.

In all your excitement, I am sure, you are going to buy your wife a Louis Vuitton bag (only 12.000 after the 30% tax break). That was so cheap, so why not throw in a bottle of perfume. May I suggest Coco Chanel , 50 ml will in the future only cost 3.000 !!

Happy times indeed...............

The only "luxury" item affordable for most Thais are their car/pickup truck, which since a week has become very much more expensive..............!!

Robin Hood in reverse !!

Again you demonstrated your lack of knowledge.. the reason so many crap products are available here is because of the high price of good quality. The sooner there are less import barriers the sooner the masses have access to better quality products. Not all luxury products are like the ones you describe. I am talking about other quality products like imported quality products. Protectionism is never good for the normal man. For instance beer.. because of the protections and huge import tariffs there is only cheap crap beer (i dont drink much so I dont care but its a good example). So im all for removing trade barriers and making quality available to the masses. However the Thai monopoly holding companies wont like it.

And those prices you post seem reasonable.. I guess i can give those kind of gifts now easier to all my giks and mia nois too. Happy times indeed while you struggle to survive on your meager salary and support the red cause. Must be bad for you since your friend in Dubai stopped his payments to you. Yet still you try to demonstrate your loyalty to him.

(first part of the post was in serious just for those who don't understand sarcasm)

>> Happy times indeed while you struggle to survive on your meager salary and support the red cause. <<

I live in a house on the beach in Hua Hin, you live in a moo ban in the outskirts of BKK. So it seems like your contributions to the Elite is hurting you more, than mine to Mr T............

(if it goes so well with you perhaps you should safe some money for a humor transplant and take time to understand sarcasm)

[Cpkt8]

Personally I will not buy luxury goods like branded bags or watches in Thailand even with the lower tax.

Authenticity is the main concern. That amount of savings isn't going to encourage me to risk buying fakes.

[Thian]

This is great news Thailand has too many import taxes and because of it crap products get sold good because the good quality is too expensive. By lifting these barriers everyone will benefit as the Thai companies will be forced to up their game and make better products. So even the cheaper products will become better. Win for everyone except the companies who gotten away with crap products.

This just increases the free market and is good.

In all your excitement, I am sure, you are going to buy your wife a Louis Vuitton bag (only 12.000 after the 30% tax break). That was so cheap, so why not throw in a bottle of perfume. May I suggest Coco Chanel , 50 ml will in the future only cost 3.000 !!

Happy times indeed...............

The only "luxury" item affordable for most Thais are their car/pickup truck, which since a week has become very much more expensive..............!!

Robin Hood in reverse !!

I know 5 Thai lady's who bought their Louis Vuiton in Germany or Italy or Singapore...and they were around 800 euro=32000 baht . One got stopped at the German customs with 2 of them and was asked why she needed 2? Well one for a friend of course.

My wife bought one taxfree at Singapore airport and now her friends also want to go there.

Also they let their air-hostess friends bring a lot of expensive perfume/cosmetics taxfree, also i have to bring that from Dubai.

It seems you stay on the countryside too much man. Girls in BKK will work many months for a new purse or Iphone or perfume.