Car import tax scam has cost state B60bn, hearing told
A tax evasion scam on imports of luxury vehicles involving more than 100 government officials has cost the state at least 60 billion baht in lost revenue, a parliamentary committee was told on Tuesday.
- Published: 16/10/2012 at 04:55 PM
- Writer: Mongkol Bangprapa
Pol Col Dusadee Arayawuthi, deputy permanent secretary for justice, told the senate subcommittee probing corruption in transport that 10,000 high-end automobiles, mostly from Britain, had been brought into Thailand every year since 2008.
The combined tax loss was around 60 billion baht, given that each vehicle is supposed to be taxed at one million baht or more, he added.
Pol Col Dusadee spearheaded efforts to tackle the evasion of tax on imported luxury cars when he was secretary-general of the Public Sector Anti-Corruption Commission (PACC). He was transferred to the Justice Ministry earlier this month amid criticism that the government wanted to prevent him unveiling corruption in government agencies, including the car case and flood prevention projects.
The government claimed that Pol Col Dusadee was simply promoted to a higher position.
When he was the PACC chief, the agency found about 10,000 invoices of luxury cars imported from Britain were falsified. The prices declared were far below the actual value of the vehicles, an attempt to avoid paying full import taxes.
It suspected that both politicians and Customs Department officials were involved in the scam.
On Tuesday at parliament he voiced his frustration, saying that 108 officials involved in the scam were left untouched.
"They might be backed by either politicians or senior ministry officials, otherwise they could not stay,'' he told the panel.
The case is in the hands of the National Anti-Corruption Commission (NACC). And Pol Col Dusadee on Tuesday offered to sit in an NACC subcommittee to help take action on those involving in the scandal.
He also proposed the Senate to come up with a set of measures to prevent tariff evasion on exported cars.
Pol Col Dusadee recommended that the customs officials calculate the tariffs based on the real values of the cars, determined either from the exporters' documents or cross referenced with authorised dealers. Also the import firms' transactions must be verified to aid revenue collection, he added.
Early this year, four companies importing luxury cars called on the ministry to look into reports that Thai overseas students were abusing their right to bring cars into Thailand without having to pay fees and 200% taxes like proper importers have to.
Share your thoughts
- Discussion 1 : 17/10/2012 at 07:03 AM
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Disc 13
Spot on .
from iPhone application.
- Discussion 2 : 17/10/2012 at 01:52 AM
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Discussion 7: "Maybe here the prices are high because they don't want people to have a car." On the contrary: the government is pouring millions of baht into subsidies for people buying their first car. Moreover, a car is a status symbol, so everyone wants to have one and most normal people get loans from banks paying them of over many many years. Of course taxes are high on imported cars because cars are manufactured in Thailand and those have to be sold first. Both the social and economic systems make sure that the government and the car manufacturers are sure to make loads of money, as is to be expected in a pure and unchecked capitalist economy.
- Discussion 3 : 17/10/2012 at 12:42 AM
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And what exactly is going to be done about the crooked politicians and customs officers? Yeah, you guessed it, nothing!
from iPhone application.
- Discussion 4 : 16/10/2012 at 10:38 PM
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My neighbour yesterday proudly showed me his 'new' 10 year old BMW. It cost him 400,000 baht!!! When I told him the same car would cost me about £500 in the UK his face dropped. I agree with many posters that the import tax in Thailand is off the scale and it's no wonder that people try to circumvent the laws. Still, by the laws of this country it's still a crime and it's no surprise that the main perpetrators are the people in power. Respect to Pol Col Dusadee for raising the issue but maybe time for some fairer import laws.
- Discussion 5 : 16/10/2012 at 08:17 PM
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Guys , in Thailand import tax for toys , that kids play 27 % ! That a total rip off !
you want the scam end !! Ban used import !! Only new , an list price from factory !!! Will end corruption very fast !!!
I'm economist , I see this every day !!
from iPhone application.
- Discussion 6 : 16/10/2012 at 08:06 PM
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why not lower the tax instead of selling us stripped down overpriced cars with none of the safety features available in other countries
- Discussion 7 : 16/10/2012 at 07:42 PM
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@ Discussion 1 (englishbob):
Who needs a new style BMW Mini Cooper anyway ?
When I still lived in Europe prices started around 20,000 Euros, a real shame for such a small car.
- Discussion 8 : 16/10/2012 at 07:42 PM
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Another day, another scandal
- Discussion 9 : 16/10/2012 at 07:39 PM
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Can anyone newer the question why the ripoff tax is so high..
from iPhone application.
- Discussion 10 : 16/10/2012 at 07:38 PM
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How much have they made ripping everyone off over the years with the outrageous taxation more than 60Bn I would say.
from iPhone application.
- Discussion 11 : 16/10/2012 at 07:21 PM
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All the cars in Thailand are ridiculously overpriced. I can buy 10 different models in America for only 100,000bt. On the otherhand the roads and citys are designed to handle more traffic. Maybe here the prices are high because they don't want people to have a car.
- Discussion 12 : 16/10/2012 at 07:03 PM
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If the import duties were less excessive, it would be less interesting to evade them.
- Discussion 13 : 16/10/2012 at 06:58 PM
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So why don't they chase up the 1 million Baht per each of the 10,000 invoices? Either pay the tax or have the car confiscated and sold at Govt auction.
But it will never happen as to many 'Officials' and Phu Yai are involved, so it will just go back to business as normal.
- Discussion 14 : 16/10/2012 at 06:54 PM
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Wow, 60 Billion Baht involved and 108 officials untouched.
In amazing Thailand the corruption is everywhere.
Why is the DSI not taking over this case ???
- Discussion 15 : 16/10/2012 at 06:49 PM
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This is kind of old news....but it strikes me that quite often ministry officials are mentioned in many cases, reminds me of the good old Humphrey from Yes Minister...maybe it is time to clear out the rotten apples among all these guys...seem to even more rotten that politicians .... so get on with it, name them, shame them and lock the away ....or as it often ends with that kind of people...transferred to inactive duty (:
- Discussion 16 : 16/10/2012 at 06:48 PM
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I think it is fair to say that corruption is now officially out of control in Thailand. It's running riot now, and the Gravy Train is so full of politicians, officials, etc., that it is looking like an Indian passenger train.
- Discussion 17 : 16/10/2012 at 06:16 PM
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This is one scam I am entirely in agreement with...
...because the current taxation of imported cars into Thailand is utterly ludicrous.
4 million baht for a Mini Cooper?!? Daylight robbery! It's about time someone scammed the robbers.
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