Toyota unit in Thailand asked to pay 272 million USD in import duties

Illustrative image (Photo: AFP)

Bangkok (VNA) - The Thailand Supreme Court has upheld a ruling that the local unit of Toyota Motor Corp owed the government 10 billion baht (272.11 million USD) in extra taxes for importing components not subject to a reduced tariff.

The court agreed with the previous decision that the imported items should be treated as complete knock-down kits, with an 80% tariff rate, instead of as auto parts, meaning they were not eligible for a reduced rate of 30% under the Japan-Thailand Economic Partnership Agreement (JTEPA).

In a written statement, Toyota's Thailand unit said it was paying the lower tax rate for imported Prius parts based on JTEPA, but it respected the ruling and would comply.

The additional tax was owed on more than 20,000 Prius vehicles assembled at Toyota's Gateway factory between 2010 - 2012, according to earlier media reports.

Toyota also produces gasoline-engine and hybrid-engine Camry sedans in Thailand, which were not subject to additional tariffs because the majority of parts are procured locally./.