As Thailand's inflation rate hits 8.9% per annum, the Commerce Ministry has moved to consider cutting the VAT or value-added tax (VAT) on consumer products from 7% to 3% for a few months to ease the price pressures on income, especially on food purchases. The department has yet to contemplate axing the penurious taxes on cars, which increase the cost of an automobile by as much as 50% more expensive than in the USA.
A 2008 Toyota Corolla fully equipped costs $17,000 US or 510,000 baht in Miami while the downsized version of the same car will hit the Thai consumers $30,000 US or 900,000 baht.
The price on wine is just as bad and the money earned from these taxes aren't going to the Thai people judging from the fact that the Thai government spends less money per capita on education and health than any of the neighboring countries, including Cambodia.
So where does that money go.
To the kon yai or rich people shopping at the Gucci stores.
"You can always afford Prada as long as you're paying with someone else's money."
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