Bangkok buses: Customs tax scam, bus delays

Scam with Chinese buses declared as Malaysian to save 1.2 million baht per bus, threatens to delay new Bangkok buses & city bus rehabilitation plan.

TRANSPORTATION & THE LAW

Bangkok buses: Customs tax scam, bus delays 

Agency issues warning over hit to revenues
19/12/2016
Amornrat Mahitthirook

A customs tax evasion case threatens to delay new Bangkok buses being put into use on the streets of Bangkok.

The legal case may also deal a blow to the debt-ridden bus agency's rehabilitation plan and its revenue - generating target, said its director Surachai Eamvachirasakul.

CUSTOMS SEIZES BUSES, ORDERS PAYMENT OF TAXES & FINES

The company Bestlin Group was contracted to supply 489 new buses to the Bangkok Mass Transit Authority (BMTA).

The first batch of 100 buses, which arrived early this month, was impounded by customs authorities at Laem Chabang port in Chon Buri amid a customs tax evasion scandal.

All of the buses, which are worth 3.3 billion baht, were required to be handed over to the BMTA by Dec 29. Super Zara Co handles the import procedures for Bestlin.

The Customs Department has ordered Super Zara to pay 370 million baht in taxes and fines before the 100 impounded buses can be released.

CUSTOMS TAX SCAM: MISUSE OF ASEAN TAX EXEMPTION

The Customs Department has accused the importing company of manipulating the import process to make the buses appear as though they were made in, and imported from Malaysia.

This way the importer could reap a tax - exemption benefit based on Asean's free trade agreement (FTA).

However, the buses were actually shipped from China.

If the vehicles were manufactured in Malaysia, as claimed, they would have been eligible for a 40% import duty exemption, or 1.2 million baht each.

BANGKOK BUS REHABILITATION PLAN: NEGATIVE IMPACT?

The agency's rehabilitation plan will be affected if the buses, which will be deployed on 21 routes, are not delivered as scheduled, says Mr Surachai.

The new bus fleet is expected to help lower fuel and maintenance costs.

The new fleet is expected to generate higher revenues and improve profit margins following a rehabilitation scheme.

"Without the new buses, the old fleet will remain in service. Those buses run on diesel which is costly and leads to high maintenance costs."

"Moreover, the delay will hurt the plan to increase annual revenue by 2-3%," he said.

According to the director, the BMTA is assessing several scenarios and measures to be adopted if the delay occurs. They range from a three-month delay, six-month delay to zero delivery.

The BMTA has also asked Bestlin Group to submit its revised delivery plans as soon as possible.

"They will tell us today about the delivery of the buses. They're discussing customs tax and fine payments with the Customs Department and they can't promise that all the buses will be delivered by Dec 29," he said.

LABOUR UNION CONCERN ABOUT 'ILLEGAL' BUSES

Earlier, the BMTA labour union, which counts itself as a stakeholder in the case, has asked the BMTA to make sure that the buses are legal.

Mr Surachai insisted that if the Customs Department agrees to release the buses and the Department of Land Transport allows the buses to be registered to complete the hand over, the new buses will be legal and the BMTA is not buying "stolen goods" as alleged by some.

http://www.bangkokpost.com/news/general/1162833/bmta-voices-bus-delivery-delay-fears

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