LAW, TAX REFORM TO FACILITATE WORLD TRADE

       Deputy Finance Minister Pradit Phataraprasit yesterday promised to revise harsh penalties under customs laws and reform the trade taxation system in order to facilitate international commerce.
       The Thai Chamber of Commerce, Federation of Thai Industries (FTI) and Thai Bankers' Association have complained about the Finance Ministry's plan to revise the laws and regulations related to customs duties.
       Pradit said he would reduce the fine to between zero and four times the value of imported goods from the current four times and leave it to the courts to judge the appropriate rate.
       Pradit pledged to the members of the Joint Public Private Committee at the seminar that he would reform the customs system.
       He would within a month propose a law amendment to the Cabinet.
       An overhaul of the system should lead to lower production costs for the private sector and greater transparency in tariff procedures.
       The current high fine deterred importers from taking disputes to court and they are forced to pay fines to the Customs Department instead, he added.
       Kittipong Urapeepatanapong, representing the Thai Chamber of Commerce, argued that the Finance Ministry should not press criminal charges on importers if they do not mean to break the law but fail to pay taxes in full due to some mistake or typographical errors in their documentation.
       He also asked the ministry to allow importers to take tariff disputes to a special court, such as the tax court, not the criminal court.
       Customs agents tend to impose high fines as they have the right to receive the lion share of the fine. Those who do not intend to evade duties should not be subject to severe penalties, he said.
       Ponsathorn Ansusinha, representing the three organisations, said the Customs Department should limit the period for the tax appeals committee to rule on a tax case.
       Charonchai Salyapong, representing the FTI, raised concerns about the Excise Department's plan to expand the excise tax base for tax calculations next year.
       Although the tariff rates on goods would be cut to zero next year under the Asean free trade agreement, the Excise Department will collect higher excise taxes than today, he said.
       The department plans to calculate taxes based on the old tariff rates, he said.
       If the department does as it plans, it risks violating the free trade pact, he said.
       The Excise Department wants to collect more taxes to offset the loss by cutting the rates on 18 products, including cars, alcoholic beverages and cigarettes, he added.