Thai Supreme Court rules Toyota division must pay $272 million in import duties

Thai Supreme Court rules Toyota division must pay $272 million in import duties

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BANGKOK, Sep 15 (Reuters) – Thailand’s Supreme Court on Thursday upheld a lower court ruling that Toyota Motor Corp. (7203.T) owed the government 10 billion baht ($272.11 million) in additional taxes on imports of components not covered by the reduced tariff.

The court was considering an appeal against a 2019 ruling that the company must pay duties on certain parts imported from Japan that were intended for its Prius gas-electric hybrid model assembled in Thailand between 2010 and 2012.

The court agreed with the previous ruling that imported goods should be treated as complete knock-down kits with an 80% tariff rate, rather than auto parts, which means they are not eligible for the 30% reduced rate under Japan. Thailand Economic Partnership Agreement (JTEPA).

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Toyota Thailand said in a written statement that it pays a lower tax rate on imported Prius parts based on the JTEPA, but respects the decision and will abide by it.

According to earlier media reports, the surcharge was paid on more than 20,000 Prius vehicles assembled at the Toyota Gateway plant between 2010 and 2012.

Toyota also makes petrol and hybrid Camry sedans in Thailand, which are not subject to surcharges as most parts are sourced locally.

(1 dollar = 36.7500 baht)

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Reporting by Panarat Tepgumpanat and Panu Wongcha-um; Editing by Martin Petty

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