Connect with us

Phuket

Boat import taxes demystified

Legacy Phuket Gazette

Published 

 on 

Boat import taxes demystified | The Thaiger
  • follow us in feedly

PHUKET: Taxes for importing a yacht into Thailand have long been a matter of confusion, discussion, argument and speculation. Now, however, Gazette inquiries with the Customs Department, both in Phuket and in Bangkok, have uncloaked the way that the various taxes are applied. For a start, it has been confirmed that there is no such thing as a “luxury tax” on imported boats (or, for that matter, on tobacco and wine). Instead, the excise tax in the case of boats has been raised to a punishing rate of just over 111%. The Gazette understands that a proposed reduction in this rate – which has the backing of the Ministry of Finance – is now awaiting Prime Minister Thaksin Shinawatra’s approval. The application of duties and taxes currently works as follows: The boat is valued by the Customs Department. Though the value is to some extent ‘negotiable’, Customs officers base their figure on precedent. If they have handled a similar boat in Phuket before, that will be used as the basis for a valuation. If not, headquarters in Bangkok or the Customs Department in Laem Chabang are requested to provide a valuation. Once the value of the boat has been established, the first impost applied is the 30% import duty. Then the excise tax is applied to the value of the boat plus the import duty. The third impost is the Mahad Thai (Interior Ministry) tax, which is equivalent to 10% of the excise tax. Finally, value-added tax, currently 7%, is applied to the sum of the original value of the boat plus all three taxes. The total taxes applicable come to around 209%. Much of the confusion in the past arose from a table of charges that Customs officials use to calculate the excise tax. The first column in this table is headed “Percentage Tax”, and yachts are listed at 50. In fact, the 50 is not a percentage; it is a factor in an arcane formula used to calculate the tax rate. Jan Jacobs of Thai Marine Leisure told the Gazette, “Up to now we have not understood what this multiplying factor is based on, because newspapers have always published the excise tax as 50%.” Narong Srivanitchakorn, Head of the Phuket Provincial Excise Office, admitted that there was confusion even among officials. “Not very many understand well enough how the 111.111% is calculated,” he said, “even in Bangkok.” For owners wishing to see how much it will cost to import a boat, the Gazette Online has created a boat tax calculator, which can be accessed at https://thethaiger.com/boattax.asp.

Keep in contact with The Thaiger by following our Facebook page.



Read more headlines, reports & breaking news in Phuket. Or catch up on your Thailand news.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Phuket

Phuket officials visit Kamala restaurant after customer charged 6,750 baht

Maya Taylor

Published

on

Phuket officials visit Kamala restaurant after customer charged 6,750 baht | The Thaiger
PHOTO: Facebook/ Lalita Chaiyasit

A seafood restaurant in Kamala, a west coast town in Phuket, has received strong criticism on social media after trying to charge a customer 6,750 baht for a takeaway meal. 3,000 baht of the bill was a “cooking fee”. Lalita Chaiyasit took to social media to vent her disbelief after receiving the bill. She says she was on holiday with her family in Phuket and wanted to order some food for delivery to their hotel. At the recommendation of their tour guide, she chose the Nanork Restaurant in Kamala, sending the tour guide to pick up the food. A report […]

Continue Reading

Tourism

Phuket’s Lard Yai Sunday night market springs back to life

The Thaiger

Published

on

Phuket’s Lard Yai Sunday night market springs back to life | The Thaiger
PHOTO: Lard Yai springs back to life - Phuket People's Voice

The Lard Yai Sunday night walking street along Thalang Road Old Phuket Town has reopened to the delight of vendors, locals and a few expats. It has been closed for 3 months after lockdowns were applied to community markets. New Provincial Governor Narong Woonchiew says he welcomes people back to the popular market. “The province and the private sector have worked hard to make sure Lardyai walking street is safe and complies with social distancing practices to regain tourists’ confidence.” Lard Yai, a fairly recent addition to Phuket’s vibrant market scene (about 4 years ago), became an instant success in […]

Continue Reading

Opinion

Two years ago – remembering Phuket’s Phoenix boat tragedy

The Thaiger

Published

on

Two years ago – remembering Phuket’s Phoenix boat tragedy | The Thaiger

“There were 13 children that died in this disaster. Many were later found dead, floating face down, not far from their deceased parents.” On an otherwise ordinary afternoon, two tour boats, Phoenix and Serenata, were heading back to Phuket after a half day tour of snorkelling near Koh Racha. The weather forecast was for seasonal monsoonal SW winds and waves, about the usual for that time of the year. But there was also a weather warning for a storm later in the afternoon of July 5, 2018. For whatever reasons the captains of the two vessels started heading back to […]

Continue Reading

Trending