Official defends steps against car importers

“We are also keeping a close eye on other foreign goods such as liquor and wine,” said Somchai Poolsavasdi, director-general of the department.
Some luxury car importers had complained about harsh tax regulation.
However, Somchai said some importers might try to avoid paying the full tax by declaring unrealistically low prices.
The department understands that importers could get different discounts on prices of foreign motor vehicles, such as by buying them in big batches or choosing unfashionable models.
“But the price should not be sharply different from other importers, or from the department’s reference price,” he said.

The department’s reference prices are aimed at creating a level playing field and collecting the proper taxes according to the law and regulations.
“If the price declared by an importer is too low, we will calculate the tax based on our reference price,” he insisted.
“We may let some importers off the hook at first, but we also do post-audits, which may later help us collect back taxes,” he said.
The high duty on imported luxury cars, about 80 per cent of the CIF price – cost plus insurance and freight – has encouraged importers to declare low prices.
There are other products such as liquor and wine that are subject to high tax rates and need careful checking.
The department over the past few years has lost a lawsuit lodged by a foreign cigarette manufacturer due to the World Trade Organisation’s ruling that the department’s reference price was not set in a transparent manner, he added.