Thai Customs Department to cut import duty on luxury items

[robblok]

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.

I buy my stuff in Europe unless the price was right then I would buy it here. I would not worry about fakes at real retail points. Thing is a lower tax can bring in more money. If you tax things too much spending is discouraged also by keeping prices too high for quality you promote the sale of low quality stuff.

But I almost never buy bags or watches not my thing. But in general Thailand its import taxes are far too high and prevent good quality coming in and support the cheap Thai products or cheap Chinese ones.

[jonw8uk]

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.

Do you think the Rolex store sells copies in thailand?!

I think your concerns are misplaced. Unless you expect to find authentic luxury goods at a thai market.

Somethings will be cheaper in thailand than they once was. Theres no negative side really.

The devils in the details as to what they class as luxury items...

[Thian]

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.

Do you think the Rolex store sells copies in thailand?!

I think your concerns are misplaced. Unless you expect to find authentic luxury goods at a thai market.

Somethings will be cheaper in thailand than they once was. Theres no negative side really.

The devils in the details as to what they class as luxury items...

I wouldn't be surprised if Rolex sold copies or B-grades or old models in Thailand. Same goes for ANY brand here, you just can't trust them because there's no Police for that.

[Thian]

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...

That's the law of quantity which Thai don't understand.

ALL luxury goods in Europe are sold in large quantity's so they can also demand discount from the factory's abroad. Western country's have many website full of reviews about where/what to buy and if it's good or not.

Look at those automatic coffeemachines, they are much cheaper in Europe. Even the Bialetti percolators are, my wife wants to have their capuccino-percolator with cowprint and saw it in Central for 6000 baht, it costs 45-55 euro (around 2000 baht) in Europe and they sell it online with full warranty and everything.

HDD is old man, we now have SSD which is much much faster and uses less electricity/produces less heat.

Also SSD is cheaper in Europe and to help you : Buy the Samsung Evo series. My notebook is superfast now with that. I wouldn't buy that in Thailand because it might be used in the shop, no good warranty or any other problem. In Europe you buy that online and if there's a problem you can send it back for free and get a refund/new product within 2 days delivered at your home. Try beating that Thailand.

[TallGuyJohninBKK]

One thing that nobody's mentioning here is this:

Even if the govt goes ahead and cuts the duty on some unspecified luxury imported items, what's to say that the involved retailers will actually cut their store/selling prices accordingly? More than likely, just keep prices the same and pocket the difference as profit. That's the Thai, monopolistic way.

[Thian]

One thing that nobody's mentioning here is this:

Even if the govt goes ahead and cuts the duty on some unspecified luxury imported items, what's to say that the involved retailers will actually cut their store/selling prices accordingly? More than likely, just keep prices the same and pocket the difference as profit. That's the Thai, monopolistic way.

Thailand is far behind with internetshopping which can beat all other retailers easy because they don't pay much rent for their warehouse.

Also it's very expensive to buy online and get it delivered in Thailand because of import tax and corrupt mailmen and so on.

If Thailand had good webshops like we have in Europe these days then the malls go bankrupt. It's just a matter of time before that happens.

On Thai markets there are far too many small stands, once we get big stores like Wallmart or other chains the Thai markets are gone. Old dirty tricks like not showing retailprices are so oldfashioned these days. But it still works in Thailand because they all do it, even in Tops supermarket they do it.

[Time Traveller]

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

When did taxes ever make sense?

[geriatrickid]

This actually makes sense.

How so? Most of the Thai population does not purchase luxury goods. Those that do, are the extremely wealthy. How does cutting their tax benefit the nation. Does the impoverished rural subsistence farmer in Nahkon si Thammarat benefit is Mrs Wing Wo buys a new Versace bag?

[trogers]

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

Wine is now considered a necessity, and not a luxury, for tax purposes... ?

[Thian]

This actually makes sense.

How so? Most of the Thai population does not purchase luxury goods. Those that do, are the extremely wealthy. How does cutting their tax benefit the nation. Does the impoverished rural subsistence farmer in Nahkon si Thammarat benefit is Mrs Wing Wo buys a new Versace bag?

You no understan?

It's better to let them spend in Thailand then abroad where it's cheaper and they also book a hotelroom and the lot. On top of that if they are abroad they can see other ways of living and running a country and they shouldn't see that.

And for me almost everything sold in Central is luxury goods, you don't need that to be happy/healthy. A Versace bag though is important for social status and we all know that's vely vely important in Thailand. I would rather go to Japan for a holiday then buying a Versace but i'm the falang kee nok.

My friend who works in BKK went to have lunch with her Versace wallet in her hand on the back of a motocy taxi. Then a scooter passed by and grabbed it of her.......Guess she learned her lesson.

[gerry1011]

There are already more than enough items for the poor (farangs and others) to buy.

The rich have plenty of choices for luxury shopping. Lower the taxes on these items does not change anything for this segment of the customers. They buy anyway.

It is a very good idea to make so that these luxury items become more affordable to the middle class.

The luxury industry creates a lot of jobs. Very good.

[KonKorat]

Why don't they just devalue the baht and they will make a windfall with more tourist and they will have more baht for shopping more,everyone's a winner!

[kiwikeith]

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

I would like to see the list of items included and excluded, might open the gates for wine imports.

[trogers]

This actually makes sense.

How so? Most of the Thai population does not purchase luxury goods. Those that do, are the extremely wealthy. How does cutting their tax benefit the nation. Does the impoverished rural subsistence farmer in Nahkon si Thammarat benefit is Mrs Wing Wo buys a new Versace bag?

You no understan?

It's better to let them spend in Thailand then abroad where it's cheaper and they also book a hotelroom and the lot. On top of that if they are abroad they can see other ways of living and running a country and they shouldn't see that.

And for me almost everything sold in Central is luxury goods, you don't need that to be happy/healthy. A Versace bag though is important for social status and we all know that's vely vely important in Thailand. I would rather go to Japan for a holiday then buying a Versace but i'm the falang kee nok.

My friend who works in BKK went to have lunch with her Versace wallet in her hand on the back of a motocy taxi. Then a scooter passed by and grabbed it of her.......Guess she learned her lesson.

My life has been based on the belief that the amount of cash in one's wallet is more important than the brand name of the wallet. Has anything changed?

[mihalis]

How about cutting imports tax on cars, bikes... Prices in oz are high enough, yet Thailand is even more.. HD sportster 48 being almost double in Thailand.. CX5 costing way more and so on.. Give the people who live here a break..

[Thian]

This actually makes sense.

How so? Most of the Thai population does not purchase luxury goods. Those that do, are the extremely wealthy. How does cutting their tax benefit the nation. Does the impoverished rural subsistence farmer in Nahkon si Thammarat benefit is Mrs Wing Wo buys a new Versace bag?

You no understan?

It's better to let them spend in Thailand then abroad where it's cheaper and they also book a hotelroom and the lot. On top of that if they are abroad they can see other ways of living and running a country and they shouldn't see that.

And for me almost everything sold in Central is luxury goods, you don't need that to be happy/healthy. A Versace bag though is important for social status and we all know that's vely vely important in Thailand. I would rather go to Japan for a holiday then buying a Versace but i'm the falang kee nok.

My friend who works in BKK went to have lunch with her Versace wallet in her hand on the back of a motocy taxi. Then a scooter passed by and grabbed it of her.......Guess she learned her lesson.

My life has been based on the belief that the amount of cash in one's wallet is more important than the brand name of the wallet. Has anything changed?

Then you must be Chinese? Would you be happy to live in Beijing where traffic and pollution are horrendous and you have a stressfull job which pays well?

Being very rich also give loads of problems, especially for ones who like to show their wealth.

Upcountry one doesn't need much money to be happy i guess, if there's enough food on the table and everybody is healthy and doesn't have to work too hard then that's all one needs. Office girls in BKK make eachother crazy with their designer brands and newest cellphones. They even can't use them except for making pictures, playing games and chatting on Line. A cheap cellphone can also do so.

[Seastallion]

There are already more than enough items for the poor (farangs and others) to buy.

The rich have plenty of choices for luxury shopping. Lower the taxes on these items does not change anything for this segment of the customers. They buy anyway.

It is a very good idea to make so that these luxury items become more affordable to the middle class.

The luxury industry creates a lot of jobs. Very good.

Heaven forbid the middle class being able to afford luxury items!!!!

How would the elite stay separate and aloof if their handbags and watches are the same as everyone else's? They would never let that happen.

[trogers]

This actually makes sense.

How so? Most of the Thai population does not purchase luxury goods. Those that do, are the extremely wealthy. How does cutting their tax benefit the nation. Does the impoverished rural subsistence farmer in Nahkon si Thammarat benefit is Mrs Wing Wo buys a new Versace bag?

You no understan?

It's better to let them spend in Thailand then abroad where it's cheaper and they also book a hotelroom and the lot. On top of that if they are abroad they can see other ways of living and running a country and they shouldn't see that.

And for me almost everything sold in Central is luxury goods, you don't need that to be happy/healthy. A Versace bag though is important for social status and we all know that's vely vely important in Thailand. I would rather go to Japan for a holiday then buying a Versace but i'm the falang kee nok.

My friend who works in BKK went to have lunch with her Versace wallet in her hand on the back of a motocy taxi. Then a scooter passed by and grabbed it of her.......Guess she learned her lesson.

My life has been based on the belief that the amount of cash in one's wallet is more important than the brand name of the wallet. Has anything changed?

Then you must be Chinese? Would you be happy to live in Beijing where traffic and pollution are horrendous and you have a stressfull job which pays well?

Being very rich also give loads of problems, especially for ones who like to show their wealth.

Upcountry one doesn't need much money to be happy i guess, if there's enough food on the table and everybody is healthy and doesn't have to work too hard then that's all one needs. Office girls in BKK make eachother crazy with their designer brands and newest cellphones. They even can't use them except for making pictures, playing games and chatting on Line. A cheap cellphone can also do so.

Not Chinese, but a Baby Boomer. Seems the present generation judges on form but not gist.

[Thaidream]

The poster who spoke of the cost of imported drugs really hit home. I had a family member who used chemotherapy and had to have imported drugs. While the cost was not as high as in America is was still almost 1 million Baht per treatment course. If Thailand really wanted to help its people and others it would immediately stop this practice. Anyone , even a country, that makes money off the illness of another is unethical. In regard to luxury goods- that is a smokescreen. The majority of tourists that come to Thailand are budget tourists and would never purchase expensive perfume or handbags. As for wealthy Thais- they already have enough money to purchase at the current price. Thailand needs to take care of its poor people and stop all this nonsense which helps only those that have money. A Baht devaluation would raise their GDP greatly and provide an economic stimulus. It won't happen because the country would lose face.

[trogers]

The poster who spoke of the cost of imported drugs really hit home. I had a family member who used chemotherapy and had to have imported drugs. While the cost was not as high as in America is was still almost 1 million Baht per treatment course. If Thailand really wanted to help its people and others it would immediately stop this practice. Anyone , even a country, that makes money off the illness of another is unethical. In regard to luxury goods- that is a smokescreen. The majority of tourists that come to Thailand are budget tourists and would never purchase expensive perfume or handbags. As for wealthy Thais- they already have enough money to purchase at the current price. Thailand needs to take care of its poor people and stop all this nonsense which helps only those that have money. A Baht devaluation would raise their GDP greatly and provide an economic stimulus. It won't happen because the country would lose face.

Not true that tourists do not buy branded goods. The Chinese did, by the dozens. But that was before their stockmarket and economy tanked.

[Thaidream]

Asians do buy branded goods. It is amazing to me why anyone would pay the equivalent of hundreds of dollars or Euros for an item that is made for 10% of the cost. Since I have never done it never will do it; and don't care what the brand is- I probably cannot relate. Purchasing anything to show others how well off one is truly is narcissism at its worst.

[Skywalker69]

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...

There is expat's living in Thailand, just for your knowledge.

[realenglish1]

If you want to encourage domestic consumption drop all duties Sales will rise dramatically

Why should someone buy lets say a Louis Vutton bag here when they can get it 20 Per Cent cheaper in Hong Kong or Singapore

Just one example of hundreds of thousands of items

[Bluespunk]

Hopefully will apply to imported wireless/Bluetooth speaker systems...;-/

[gerry1011]

There are already more than enough items for the poor (farangs and others) to buy.

The rich have plenty of choices for luxury shopping. Lower the taxes on these items does not change anything for this segment of the customers. They buy anyway.

It is a very good idea to make so that these luxury items become more affordable to the middle class.

The luxury industry creates a lot of jobs. Very good.

Heaven forbid the middle class being able to afford luxury items!!!!

How would the elite stay separate and aloof if their handbags and watches are the same as everyone else's? They would never let that happen.

They will find a way, don't worry

Plenty of super cars, diamonds, yachts, haute couture, caviar dinners, or top end penthouses to make the difference. No worries.

The good thing is that some farang "wives" may soon be happy that their farang can finally afford the bag they dream of since a long time (if they did not divorce yet, of course).

[Thian]

The poster who spoke of the cost of imported drugs really hit home. I had a family member who used chemotherapy and had to have imported drugs. While the cost was not as high as in America is was still almost 1 million Baht per treatment course. If Thailand really wanted to help its people and others it would immediately stop this practice. Anyone , even a country, that makes money off the illness of another is unethical. In regard to luxury goods- that is a smokescreen. The majority of tourists that come to Thailand are budget tourists and would never purchase expensive perfume or handbags. As for wealthy Thais- they already have enough money to purchase at the current price. Thailand needs to take care of its poor people and stop all this nonsense which helps only those that have money. A Baht devaluation would raise their GDP greatly and provide an economic stimulus. It won't happen because the country would lose face.

In Europe there are some outlets for designer brands and daily there are buses with Asian tourists stopping there to shop.

If they can buy it cheap in Asia they will. It's the same for Thai who go to Europe and bring designer purses back because it saves them 10-20%.

Tourists might not buy it in Thailand because here anything can be fake, even the girls. That's the image Thailand has wurlwy and that's not easy to change.

[Thian]

If you want to encourage domestic consumption drop all duties Sales will rise dramatically

Why should someone buy lets say a Louis Vutton bag here when they can get it 20 Per Cent cheaper in Hong Kong or Singapore

Just one example of hundreds of thousands of items

It's not only then 20% difference which counts.

If a lady brings a new purse to work, the collegues will ask her where she bought it and then she can say: in Hongkong! That's double status gain.

If she can say: in Europe while i visited my friend/family there that's even triple status gain. Then you also have a friend in Europe. Then you can show pictures of Europe on your cellphone and that will be the talk of the day.

There are several shops in BKK who sell used LV purses but hey who wants to tell they bought it there? I also now a guy who makes a living by selling used Hermes necktie's for men on ebay. That's his sidebusiness which makes more money then the familybusiness he also does.

[TheAppletons]

If you want to encourage domestic consumption drop all duties Sales will rise dramatically

Why should someone buy lets say a Louis Vutton bag here when they can get it 20 Per Cent cheaper in Hong Kong or Singapore

Just one example of hundreds of thousands of items

It's not only then 20% difference which counts.

If a lady brings a new purse to work, the collegues will ask her where she bought it and then she can say: in Hongkong! That's double status gain.

If she can say: in Europe while i visited my friend/family there that's even triple status gain. Then you also have a friend in Europe. Then you can show pictures of Europe on your cellphone and that will be the talk of the day.

There are several shops in BKK who sell used LV purses but hey who wants to tell they bought it there? I also now a guy who makes a living by selling used Hermes necktie's for men on ebay. That's his sidebusiness which makes more money then the familybusiness he also does.

"Certified, pre-owned neckties". There's a market for everything, lol.

[Thaidream]

"There is a sucker born every minute."

P.T. Barnum

[CWMcMurray]

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...

Not if you consider that the current largest group of tourists are Chinese ...

And the import duty for luxury goods in Mainland China is Also high

So if lowered... A very good chance that Chinese tourists will buy up a ton of luxury products