Row over steel imports
Manufacturers of transformer equipment and electrical appliances, which rely on imports of silicon steel, yesterday threatened to move their entire Bt100-billion base to Vietnam following a Customs Department order to pay Bt1 billion in back taxes and a Bt2-billion fine.
A source from the Federation of Thai Industries' Electrical, Electronics and Allied Industries Club alleged that Bt1.65 billion of the amount would go to officials instead of the government. The nine affected steel importers said the tax demand could affect at least Bt1 trillion-worth of investment and Bt500 billion in exports, as well as 10,000 jobs. They denied the Customs Department's allegation that they under-reported their tax payments from 1995 to 2003. The back taxes stem from a change in the department's harmonisation rule, whereby the one-per-cent tariff on steel containing less than 0.6-per-cent silicon - categorised as a resource that cannot be found in Thailand - was later amended to 12 per cent. The case is with the Depart-ment of Special Investigation.
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