Motorcycle Tax Increases!!!

[Ian Bungy]

I was just Told today by both Honda Big Wing and Ducati that the Government in all their Wisdom have Increased the Tax on Motorcycles!!! Up to 1000cc increases by 10%. Over 1000cc increases by 20%. This will mean a substantial Increase to the Prices of Big Motorcycles so better Buy now if You can? Ducati aren't accepting any Orders till Monday once they have confirmed the New Price List. Honda will take Orders at their Current Price List till Next Week then up they Go!!!
Good Old Government and just when We thought Motorcycle Prices would start to go down!!! They may be getting in ahead of the Asian Trade Agreement? For every Saving they increase Tax accordingly!!! Lovely!!!

 

[NickyBKK]

Ian Bungy;285659 wrote: I was just Told today by both Honda Big Wing and Ducati that the Government in all their Wisdom have Increased the Tax on Motorcycles!!! Up to 1000cc increases by 10%. Over 1000cc increases by 20%. This will mean a substantial Increase to the Prices of Big Motorcycles so better Buy now if You can? Ducati aren't accepting any Orders till Monday once they have confirmed the New Price List. Honda will take Orders at their Current Price List till Next Week then up they Go!!!
Good Old Government and just when We thought Motorcycle Prices would start to go down!!! They may be getting in ahead of the Asian Trade Agreement? For every Saving they increase Tax accordingly!!! Lovely!!!

That is great news.. my bike has 1078cc. That would mean that my bike's second hand value would go up. Just kidding of course. It would mean that all our bike's value would go up.

Do you know if this new increase in taxes also applies to bikes that are assembled/produced in Thailand?

I can't follow this governement's strategy. They give people incentives to buy their first care and they increse tax on bikes.

So there will be more cars and less bikes.!? Shouldn’t it be the opposite if you want to decrease traffic jams and pollution?

 

[NickyBKK]

NickyBKK;285661 wrote: That is great news.. my bike has 1078cc. That would mean that my bike's second hand value would go up. Just kidding of course. It would mean that all our bike's value would go up.

Do you know if this new increase in taxes also applies to bikes that are assembled/produced in Thailand?

I can't follow this governement's strategy. They give people incentives to buy their first care and they increse tax on bikes.

So there will be more cars and less bikes.!? Shouldn’t it be the opposite if you want to decrease traffic jams and pollution?

Just gave Ducati a call and they confirmed (Sort of) what you said. I have to say that the manager was not 100% clear. In short, they don't take orders till monday when they announce the new price. He thought that my bike's new price would increase by 8-9% (for a 1078cc bike) but he was not 100% sure. (maybe the tax formula is a little more sophisticated then what you mentioned, maybe...)

Tax applies to all bikes that will be delivered/registered starting from 2013. So even if you bought your bike a week ago, you still have to pay the new tax rate.

His biggest headache was the fact that they sold many bikes during the Bangkok car show a couple of weeks back. Now he has to contact all the customers to tell them their bike will be more expensive.

Anyhow, let's wait till Monday.

 

[KZ25]

What tax are we talking about? Sales tax?

 

[yankee99]

NickyBKK;285664 wrote: Just gave Ducati a call and they confirmed (Sort of) what you said. I have to say that the manager was not 100% clear. In short, they don't take orders till monday when they announce the new price. He thought that my bike's new price would increase by 8-9% (for a 1078cc bike) but he was not 100% sure. (maybe the tax formula is a little more sophisticated then what you mentioned, maybe...)

Tax applies to all bikes that will be delivered/registered starting from 2013. So even if you bought your bike a week ago, you still have to pay the new tax rate.

His biggest headache was the fact that they sold many bikes during the Bangkok car show a couple of weeks back. Now he has to contact all the customers to tell them their bike will be more expensive.

Anyhow, let's wait till Monday.

Not sure i understand? I picked my bike up yesterday. You think they are going to come ask for more money? They did say i was lucky as i have mine already. fyi two kawasaki dealer cfm this. One said it will not apply to grey imports.

 

[Franz]

If I understood this right the yearly vehicle tax will increase. Meaning I pay yearly vehicle tax for the FJR1300 now THB 100.-, next year it will be THB 120.-. Just for comparison my Focus 2.0 costs me THB 2,606.40 a year, down from 2,896.- in the first years. This one will decrease further to THB 2,316.80 in 2013.
Don't think we talk about VAT, as for vehicles produced in Thailand there's only VAT on new cars and this one stays at 7%. Another thing could be imports but that would not mean no tax increases but Customs duties increases, so let's hope my information is right.
The only real significant tax on motorcycle producers is the taxation of their profits at yearend and that's a 30% but the news told me that there might be a decrease in corporate income tax from 2013 on.......................BOI registered companies get a tax break anyway for the first 8 years and then a reduced rate of 15% for another 5 years depending on what 'zone' you are in, numbers are for zone 3, so upcountry ones.
Rgds, FR

 

[johngooding]

Thanks Franz. That change makes sense, relating the tax to engine size and is still so cheap compared to Europe etc. I wonder if they will also increase the 1 baht a month fine for late renewal

 

[NickyBKK]

yankee99;285722 wrote: Not sure i understand? I picked my bike up yesterday. You think they are going to come ask for more money? They did say i was lucky as i have mine already. fyi two kawasaki dealer cfm this. One said it will not apply to grey imports.

Like they said, you were most probably lucky. I can't imagine that they are going to ask you for more money because it seems that your bike was registered just before or during the tax increase was announced.

Just to be clear, I don't know exactly which tax they are talking about but bikes are going to get more expensive to buy from next week onwards, just like Ian Bungy said and Ducati confirmed. For example, Ducati has taken down its pricelist from their web-site. On Monday they will publish new prices.

Whether or not road tax will increase I don't know.

 

[yankee99]

johngooding;285735 wrote: Thanks Franz. That change makes sense, relating the tax to engine size and is still so cheap compared to Europe etc. I wonder if they will also increase the 1 baht a month fine for late renewal

I dont see how we can be lucky when a 591,000 baht motobike will go up between 50,000-100,000. It had a huge tax already.

 

[johngooding]

yankee99;285742 wrote: I dont see how we can be lucky when a 591,000 baht motobike will go up between 50,000-100,000. It had a huge tax already.

Franz is suggesting that the tax increase is on Road Tax, so the increase would be 10 Baht per year for a 1L bike or 20 baht for his FJR1300. Lets wait and see for the actual details of what this tax is

 

[brian_bkk]

yankee99;285722 wrote: Not sure i understand? I picked my bike up yesterday. You think they are going to come ask for more money? They did say i was lucky as i have mine already. fyi two kawasaki dealer cfm this. One said it will not apply to grey imports.

From the sounds of it.. No.. You have it already.. post 2013 you pick up you would have had to pay.

 

[brian_bkk]

Franz;285732 wrote: If I understood this right the yearly vehicle tax will increase. Meaning I pay yearly vehicle tax for the FJR1300 now THB 100.-, next year it will be THB 120.-. Just for comparison my Focus 2.0 costs me THB 2,606.40 a year, down from 2,896.- in the first years. This one will decrease further to THB 2,316.80 in 2013.
Don't think we talk about VAT, as for vehicles produced in Thailand there's only VAT on new cars and this one stays at 7%. Another thing could be imports but that would not mean no tax increases but Customs duties increases, so let's hope my information is right.
The only real significant tax on motorcycle producers is the taxation of their profits at yearend and that's a 30% but the news told me that there might be a decrease in corporate income tax from 2013 on.......................BOI registered companies get a tax break anyway for the first 8 years and then a reduced rate of 15% for another 5 years depending on what 'zone' you are in, numbers are for zone 3, so upcountry ones.
Rgds, FR

That makes more sense Franz.. Will wait for any further information you get..

If only registration.. Not a biggie...

 

[Ian Bungy]

I am pretty Sure it is Nothing to Do with Registration! I was Referring to Sales Tax on Big Bikes! I was Told by both Honda and Ducati the Prices will increase significantly! It goes on a Sliding Scale I was Told Yesterday and will affect nearly All Bikes from 150cc up! As much as 20 % I was told by both Dealers, repeat that is 20 % not 20 Baht? If that was all it was it wouldn't have even rated a mention by anyone would it!!!

 

[KZ25]

Usually bigger changes take their time in TH and word leaks first, sometimes months in advance.

That sales prices go up 20% effective in about a week is hard to believe. But then again I learned to believe the unbelievable...

Let's hope it's only the road tax, that's minor and I wouldn't be surprised if nobody has heard of it in advance, or this late.

 

[big guns]

From reading other threads it appears that the import duty on imported bikes over 800cc increases from 103% to 123% and this takes effect immediately. It remains to be seen if that impacts on bikes which are assembled here. It may be the case that it doesn't impact on the big bikes assembled in Thailand.

I've pasted the entire story below

New vehicular excise tax rates depend on CO2 emissions, from 2016
By Digital Media

BANGKOK, Dec 19 - The Cabinet yesterday approved a new excise tax structure to take effect in January 2016 in accord with a vehicle's quantity of carbon dioxide emissions, and 20 per cent higher excise taxes on luxury motorbikes and motorcycles to take immediate effect.

The Finance Ministry earlier asked the Cabinet to agree to an equitable solution to the tax structure's distortion, for fairness in tax collections, and to support the automotive industry.

The new excise tax structure is divided into seven types according to the type of vehicle.

A 30 per cent tax collection will be applied to sedans and vehicles of no more than 10 seats with a cylinder capacity of no more than 3,000cc and CO2 emission of no more than 150g/km. A 35 per cent tax will be levied on emissions of 150-200g/km, and 40 per cent for emissions of more than 200g/km.

A 25-per cent tax collection will cover automobiles using E85 and natural gas and a cylinder capacity of no more than 3,000cc and CO2 emissions of no more than 150g/km. A 30 per cent tax will be applied to the emission quantity of 150-200g/km, and 35 per cent for more than 200g/km.

Hybrid cars with a cylinder capacity of no more than 3,000cc, emitting CO2 at no more than 100g/km will be taxed t 10 per cent. Those releasing carbon dioxide at 100-150g/km will be placed with 20-per cent tax, at 150-200g/km with 25-per cent tax, and at more than 200g/km with 30-per cent tax.

A 3-per cent and a 5-per cent tax collection are levied at pickup trucks with no space behind driver and with a cylinder capacity of no more than 3,250cc, releasing CO2 at no more than 200g/km and at over 200g/km, respectively.

Pickup trucks with space behind driver with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission are taxed at 5 per cent, and those with emissions over 200g/km taxed at 7 per cent.

Double cab pickups with no more than 3,250cc cylinder capacity and less than 200g/km CO2 emission are taxed at 12per cent, while those with over 200g/km emissions taxed at 15 per cent.

Twenty-five per cent and 30 per cent taxes are levied on passenger pickups with a cylinder capacity of no more than 3,250cc, releasing no more than 200g/km CO2 and over 200g/km, respectively.

The Finance Ministry will receive revenues of around Bt25 billion from excise taxes in 2016.

Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes. (MCOT online news)

 

[KZ25]

big guns;285756 wrote: The Finance Ministry will receive revenues of around Bt25 billion from excise taxes in 2016.

Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes. (MCOT online news)

Thanks for bringing some facts into this thread! I googled "thailand motorcycle tax increase 2013" but couldn't find anything.

I'm glad it's big bikes only - tax the rich, I'm fine with that. If you can afford 1000cc bikes in Thailand I'm sure you won't mind paying a bit more.

(I'm going into hiding now.)

 

[brian_bkk]

Just spoke with one of my staff. He order a Ducati Monster last week..
He said it is not the registration tax.. His Ducati will go up by 20% cost from when he ordered it

Will let you know Monday what Ducati tell him..

I suggested we start a biker shirt movement and rally in Bangkok and take over the airports and shopping centres.

He thought that was a good idea...

Cheers
Brian

 

[Ian Bungy]

The Government has to get the Money back from all the Lovely People who can't Drive that they put in Cars!!!
You Noticed How much more Traffic there is in the Last Year and How badly they actually drive???

"With some 1.1 million first-car buyers applying for a maximum rebate of Bt100,000 each, about Bt73 billion in rebates will be disbursed, according to the Excise Department".

 

[KZ25]

I don't know what all the zeros add up to but 1.1 x 1 = 1.1

- I get it, maximum rebate...

Up to 100,000 rebate for a car? Who's idea was that?

 

[brian_bkk]

Ian Bungy;285789 wrote: The Government has to get the Money back from all the Lovely People who can't Drive that they put in Cars!!!
You Noticed How much more Traffic there is in the Last Year and How badly they actually drive???

"With some 1.1 million first-car buyers applying for a maximum rebate of Bt100,000 each, about Bt73 billion in rebates will be disbursed, according to the Excise Department".

Agree Ian.. But not only the car scheme.. You have the rice pledging scheme that is out of control.

Not too many rice farmers ride big bikes.. so pretty easy to target Bikers as unlikely voter base in the first place.

Must say.. With all the populist policies.. you have to wonder where the baht will be in 2 or 3 years time...

No one will want to cut anything so they will devalue the baht to trade themselves out of the mess...

Good for brining money in. but not if you have any here.

Cheers
Brian

 

[brian_bkk]

My staff member has been on to Ducati Bangkok today...

They will honour the price he was quoted.. Seems the ruling will take effect from December 19th after when order etc are placed.

At least this is what Ducati Bangkok are doing

Cheers
Brian

 

[big guns]

brian_bkk is their bike an imported Ducati or a locally assembled one? I'd be interested in finding out whether or not this new tax rule only applies to imported bikes or not.

 

[KZ25]

I wonder if it affects the Z800 - hopefully not since it has 799cc.

 

[brian_bkk]

big guns;285809 wrote: brian_bkk is their bike an imported Ducati or a locally assembled one? I'd be interested in finding out whether or not this new tax rule only applies to imported bikes or not.

As per the report from the BKK Post.. All bikes depending on CC.. He is buying the "made in Thailand" model

Cheers
Brian

 

[yankee99]

big guns;285756 wrote: From reading other threads it appears that the import duty on imported bikes over 800cc increases from 103% to 123% and this takes effect immediately. It remains to be seen if that impacts on bikes which are assembled here. It may be the case that it doesn't impact on the big bikes assembled in Thailand.

The Finance Ministry earlier asked the Cabinet to agree to an equitable solution to the tax structure's di
Meanwhile, the ministry also proposed to Cabinet raising excise taxes on imported luxury motorbikes to 123 per cent for 800-1,000cc cylinder capacity from the current 103 per cent. The new tax rate takes effect today.

The measure is expected to help the government gain more revenue of some Bt150 million. The ministry said those able to purchase such bikes are wealthy enough to pay higher taxes. (MCOT online news)

So this guy thinks because you can afford 300,000 in taxes you must be able to afford 360,000 in taxes. With this logic why not make it 200% instead of 123%.

maybe if they drop the tax motorcycles wouldnt be luxury items