Thailand’s National Anti-Corruption Network (NACN) has asked the Finance Ministry to investigate if Toyota Motor Thailand has understated taxes by claiming the Toyota Prius is a completely-knocked-down (CKD) vehicle, Bangkok Post reports.
NACN secretary-general Mongkolkit Suksintharanon told the English-language daily that if the Prius is judged to be an imported (CBU) car, the Japanese carmaker will be liable for about 30 billion baht in tax for domestic sales, instead of 11 billion as recently demanded by the Customs Department.
NACN believes the car is almost fully assembled outside Thailand and so should be categorised as an import. Toyota has said all Thai-market Priuses are made in Chachoengsao, however, Suksintharanon claims Toyota Motor Thailand does not have a Prius assembly line.
The Customs Department had earlier asked Toyota to pay 11 billion baht in retroactive tax for importing Prius parts between 2010 and 2012 without its approval, according to Bangkok Post.
Under the Japan-Thailand Economic Partnership Agreement, carmakers that receive Customs approval before importing parts are subject to 30% tax for CKD vehicles. Toyota is allegedly subject to 80% tax for not seeking approval.
CBU cars are subject to 187.75% tax in Thailand, but according to Thai Rung Union Car Plc MD Sompong Phaoenchoke, due to loopholes in customs law, it is possible for a carmaker to fully import a car without customs duties.
Toyota Motor Thailand chairman Pramon Sutivong has denied the evasion of import duties on Prius parts, saying the case, which is currently being appealed at the Customs Department, involves differing legal interpretations of customs regulations.
Sutivong, who is also Anti-Corruption Organisation of Thailand chairman, told Bangkok Post that his company can prove it has a local assembly line for the Prius.
In late-2010, Toyota Motor Thailand held a ceremony to mark the start of Prius production at the Gateway plant in Chachoengsao. The plant produces passenger cars, including the Vios, Camry, Camry Hybrid, Corolla and Yaris.
Looking to sell your car? Sell it with Carro.
Now we all know why car maker want to make car in thai 187% tax (80% is import tax if not mistaken)…boleh 30% import + max excise 105% + sales tax 10% total of 145%..
if i’m not mistaken for malaysia calculation should be like this car price*30% import*105% excise*10% sales tax…
eg 100,000 car price x 1.3(import) x 2.05(excise) x 1.1(sales tax) = 293,150 which is 293%… so who is higher???
You forgot to add in AP leh?
Another 20 to 40K for you.
At least we know that Thai car import tax as high as here and price of fuel much higher, as to encourage more car maker to set plant locally.
Whenever there is a popular product, the government will try their best to get a cut.
Who cares about the Rakyat? No one cares!
So now the myth of cars cheaper in Thailand has been busted wide open. That leaves the question why everyone is assembling cars there.
The answer is market volume and cheaper and stable labour compared to here.
Also TMT’s chairman says there’s no hanky panky going on cuz his Anti-Corruption Organisation says so. Why is nobody raising hell about this…
Ultra Low RV for kimchi is as prevalent in Thailand as in Bolehland.
Sure not .. I thought dat bolehland is the worst of all country in term of taxing corruption and cronyism
Pls check the fact (I need a back up here..)
I guess all Malaysians thought the same until they visited other countries and found their system is even worse off. Once return, cant continue complain and just shut up.
lol even anti corruption agency got two factions
Proton Car?