Motorcycle Tax Increases!!!

Discussion in 'General Discussion / News / Information' started by Ian Bungy, Dec 20, 2012.

  1. johngooding

    johngooding Ol'Timer

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    Today Honda increased the price of their 3 new 500cc bikes by 6000baht. This is about 3% of the sales price and they say it is due to the new tax. These bikes are not imports and are not over 800cc, so the new tax appears to be on a sliding scale and apply to all new bikes sold here. Surely their must be some official statement somewhere clarifying the situation, maybe only available in Thai at the moment.
     
  2. loserlazer

    loserlazer Member

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    I paid my deposit for cbr500 a month ago but could not pay the rest as i was going abroad that time.
    I m not sure if i pay extra. I hope not.
    Anyone knows?
     
  3. Pgt066

    Pgt066 Ol'Timer

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    Got to pay for all those Red Shirt vote buying handouts, and other "vote for us and we will give you free shit" incentives!
     
  4. Lakota

    Lakota Ol'Timer

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    I was looking at placing an order for a Honda CB500X. the price has now gone up 6k baht with this new Tax. from 209,000 to 215,000 so thats the sort of difference your looking at.
     
  5. brian_bkk

    brian_bkk Ol'Timer

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    It is based on the engine size.. If you ordered before Dec 19th.. You are OK..
    That is the day the regulation came out..

    Makes sense really.. You have a contract to purchase before the 19th.. The old tax / law would apply.
    You purchase / order on or after the 19th.. New tax / law / regulation would apply..

    Same back home every budget time.. to stop people rushing to the shops and hoarding..

    Also, you can't transfer your bike to someone else if on order.. At least this is what Ducati BKK have said..

    Cheers
    Brian
     
  6. TonyBKK

    TonyBKK Ol'Timer

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    Damn, I was just about to place a deposit on a ZX14, but this tax increase will bump the price up by 20% or ~180k Baht, all so these incompetent politicians can pay for their ill conceived populist schemes.

    In their infinite wisdom the Thai govt has decided to raise taxes on fuel efficient space saving motorcycles so that they can pay for their car rebate program and put another million eco-cars on Thailand's already gridlocked roads. WTF?!

    Screw that, I'll keep my money and invest it in the bikes I already own. Maybe I'll get a ZX14R in the US where they go for less than half the Thai price...
     
  7. KZ25

    KZ25 Ol'Timer

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    Last thing I heard was the CB500X is 205,000 THB - now it's 215,000?

    Ten thousand is not the world but I feel they're bullsh!tting us, takes the fun out of it!
     
  8. GPZ500

    GPZ500 Member

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    The tax in question is "motorcycle excise tax". It is payable once upon the motorcycle being imported (for models produced outside of Thailand) OR when leaving the factory (for domestically produced models).

    All motorcycles have excise tax charged even Honda Waves. The government has just increased the rate on larger cc models. New rates as below.

    <150 3% as before
    151-500 5%
    501 - 1000 10%
    >1000 20%
     
  9. KZ25

    KZ25 Ol'Timer

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    Right, I got the prices mixed up.

    Maybe these simply are the final prices, not the "promo prices" offered from Nov 29 - Dec 10 at the Motor Expo 2012?
     
  10. Franz

    Franz Ol'Timer

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    Sorry guys, my info was wrong, the increase in taxes is actually the excise tax or 'Saphansamit' one. Went to change my tyres on the FJR today, got the last set available from Nut at Pistonshop (Pirelli Diablo Rosso Corsa, no-one had Angel's ST) and had them mounted/balanced at Yamaha Square. New sales guy there "Art" informed me that also Yamaha will increase the prices, but for two models only from March on, prices stay until then for the stock of FZ8 and T-Max.
    As I will sell the DR650 I am now seriously thinking about getting either the current T-Max or the FZ8 or the 2011 model still in their showroom for THB 460k - brandnew. Is it only me that thinks the tax-increase comes at the same time Ape Honda presents the CB 500 ?? Let's wait & see..........................cheers, Franz
     
  11. KZ25

    KZ25 Ol'Timer

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    So it is up to the producers when and for which models they raise prices?
     
  12. Franz

    Franz Ol'Timer

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    No Klaus, me thinks Yamaha still has stock of some bikes imported earlier this year and already taxed & paid up, so these ones they do not change prices, just a guess by me..........rgds, FR
     
  13. yankee99

    yankee99 Ol'Timer

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    180k is that what they told you? I would think the tax is calculated on the base price not the current selling price right? so if its $10,000 or 300,000 in japan. Normal tax was 100% so $ 20,000 or 600,000 now at 120% would only at $2000 or 60,000 baht. So even if the zx14r was double the increase should only be $4000 or 120,000 baht....this is western logic.

    I can see this as way for the dealers to stick it to the consumers and blame it on the government.
     
  14. brian_bkk

    brian_bkk Ol'Timer

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    5555 pretty much the same analogy I used with a friend earlier today..
    Buy local made and feel minimal pain..

    no fine dining or beering up too heavily for a month or two..
    Seriously.. Just paid 1,000 baht for Xmas dinner, a beer and 2 glasses of red wine..
     
  15. feejer

    feejer Ol'Timer

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    Sorry to see these "ill conceived populist schemes" have begun to infect Thailand as well. As the middle class in Thailand grows, so will the governments desire to milk them for greater revenue. The truly wealthy have the means and connections to reduce their taxation to a mere fraction of their fair share, while the poor have little to no income or property to tax and actually require govt/taxpayer assistance to survive. That leaves the working middle class to foot the bill and it's going to get worse. Getting paid under the table along with barter/trade in the underground economy will become a much larger part of life as hungry governments around the world squeeze our pockets ever tighter.
     
  16. KZ25

    KZ25 Ol'Timer

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    I'm a bit confused but that's no surprise since when it comes to taxes, electricity and women I have no idea how they work. :)

    On one hand we have a 20% excise tax increase for motorcycles with 800cc or more which is applicable right now; on the other hand we have Yamaha and Honda increasing their prices now or later for bikes with less than 800cc. I don't see the connection.

    There should be some infromation on the net about tax increase for bikes less than 800cc. 500cc models seem to have increased by 3%. What about 250s?
     
  17. GPZ500

    GPZ500 Member

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    The old excise tax rate on the CBR 500 (before 19 Dec 2012) was 3%, now it is 5%.
     
  18. KZ25

    KZ25 Ol'Timer

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    Does this mean ALL motorcycles up to 1000cc increase by 10%? All bikes over 1000cc increase by 20%?

    If so, why is there an increase of 3% on 500cc bikes?

    Elsewhere on this thread 800cc are mentioned.
     
  19. Ian Bungy

    Ian Bungy Ol'Timer

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    I have heard various explanations including a Sliding Scale from 150cc up so We will actually have to wait and see which bikes get what hit? I personally don't believe the 500 only went up 6000 Baht? They told Me the Gold Wing went from 1.5 up to 1.8 Mill !!!
     
  20. nikster

    nikster Ol'Timer

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    I am as annoyed as anyone with these tax increases. Just when bikes got cheap... hmm.. yeah that's probably also why, as bike sales suddenly appeared on the radar. If you look at any other country, with the exception of the USA, big bikes are heavily taxed in most places. Most of the current taxes on bikes are import duties, not specifically targeted at bikes. Taxes between 5% and 20% on locally produced big bikes is not the end of the world.

    It never made sense that cars had a higher excise tax than bikes. Last time I checked car excise tax was between 30% and 50%. The 100k you get on a new tiny car is a rebate not on the price, but a rebate on the excise tax! Excise tax is absurdly high to begin with. PPVs (Fortuner and so on) 30%, and normal cars, even very small ones, are 50%.

    Big bikes are luxury items. Scooters meet basic transportation needs - we buy the big bikes because they're fun - they're a luxury we afford because we enjoy riding. If we must get from A to B a scooter or car would do the same job.

    PS: Anyone else think this has something to do with import duties going away? The Japan FTA is now getting close to 0 (how many years has it been now? 6, 7?). And Europe is negotiating a free trade agreement which should happen within the next 2 years. The reason for that is that Thailand is about to lose its 3rd world country status so EU import duties would suddenly skyrocket - if they didn't negotiate a FTA.
     
  21. nikster

    nikster Ol'Timer

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    Somebody confirmed already with Honda Big Wing Chiang Mai

    CB500F 205,000 Down Payment 48,000
    CB500R 210,000 50,000
    CB500X 215,000 52,000

    Looks like Honda's absorbing some of the new excise tax. Very lucky they just came out with new 500s, no? :D :D :D
     
  22. Hoghead

    Hoghead Ol'Timer

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    We need to know what is the tax rate in relation to displacement
    It then is not a great leap to back calculate the old VS new price in relation to that rate and determine if the seller is taking the piss or not

    I suspect that they are taking the piss
     
  23. KZ25

    KZ25 Ol'Timer

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    I just stopped by the Honda dealer. This is in Songkhla where they excitedly try to locate the only employee who can say: "Can I hellyou?" which about exhausts his English capabilities.

    But it's always a lot of fun. I asked for the price of the CRF250L, the biggest bike they ever had in their showroom, apart from the CBR250, of course. It was 135,000 THB.

    Now it's 138,000 THB. When I asked why the guy said: "Happy New Year!" and I said: "Three thousand baht more - happy new year!" and everybody laughed.

    Seems like a yearly mark-up on the 250s. That's acceptable, the bikes are cheap to begin with, they sell like hotcakes, so why not raise the price a little.
     
  24. KZ25

    KZ25 Ol'Timer

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    You seem to employ the same logic as those gov tax guys - what's 6,000 baht when you can afford a 215,000 baht motorcycle?

    What's 10,000 baht if you can afford a 800cc motorcycle? And if you have the money for a ZX1400, what's 20,000 baht to you?

    It's just a few cases of Champagne!

    No real issue here... :)
     
  25. NickyBKK

    NickyBKK Ol'Timer

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    The only thing that seems to be quite sure is that excise tax on bikes larger than 800cc will increase from 103% to 123%.

    This means that the selling price will increase by about 10% (Depending on the profit margin).
     
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