The Customs Department has been instructed to set a time limit on parking imported cars in tax-free zones after which the vehicles will be seized, says Finance Minister Apisak Tantivorawong.
It is likely to apply the existing regulations that goods can be stored for only 1-2 years at bonded warehouses in tax-free zones, he said, adding that goods left longer than the period will be seizedand put under the hammer later.
Setting a time limit on storing goods in duty-free areas will require amending department regulations, Mr Apisak said.
The move is to prevent a repeat of the current situation in which 1,140 imported cars have been abandoned at 70 bonded warehouses and tax-free zones by more than 50 car dealers since 2009.
The sluggish economy has dented demand, compelling the importers to forgo these vehicles to avoid duties and other tax bills that account for 328% of the price of each imported car.
The issue has been raised before by Prime Minister Prayut Chan-o-cha. The cars have become a burden for the Customs Department, which is charged with looking after them.
In order to solve the problem, the department plans to propose three options to the premier, including a reduction in import duty on the vehicles.
If the proposal goes through, the department will set a deadline for the importers to pay the unpaid taxes. If payment is not made in time, the cars will be seized.