A story in the Bangkok Post the day before Valentine's Day quoted an executive for a flower delivery service as saying prices for roses in Thailand are the highest in the world. The company said it had increased the price of a single rose from 370 baht to 400 baht, because of higher fuel costs and higher wages, and roses imported from the Netherlands were double that.
Most readers are probably aware that it is possible to buy locally grown, somewhat smaller roses many places around town for much less, although they too were selling for inflated prices last week. What is of more concern is that many other items which are not grown, manufactured or processed in Thailand, and even some that are, are also sold at vastly inflated prices. Much of this, of course, has to do with exorbitant import or excise taxes that are imposed on so many different categories of goods. The most well known example is cars, especially imported luxury cars, which might sell in Thailand for several times what they do in the United States or Europe.
Luxury cars manufactured locally may be twice the price abroad, and "ordinary" cars are also usually much more expensive than what the same brand and model would be elsewhere because of the excise taxes imposed. Even those benefiting from the policy of the current government to lower tax rates for first-time car buyers are still paying more than they would elsewhere.
The gridlock on Bangkok streets is proof that a great many people are willing to pay more for the privilege of having their own vehicle, but it could be argued that keeping cars overpriced is good for the environment as it discourages private car ownership and cuts down on greenhouse gases and traffic.
It is harder to justify the exorbitant prices on many other goods including many food items, camping equipment and health supplements.
An ordinary good brand of multivitamins manufactured in the US is likely to sell for three or four times more in Thailand than it does in the US. Some markup is to be expected, but not 400%.
There are many other examples, including whey proteins and the amino acid creatine, the building block for the biological energy molecule ATP and one of the few universally legal and totally natural supplements proven to boost athletic performance. As Thais become more health conscious and flock to the fitness clubs that are sprouting up throughout the country, demand for supplements has skyrocketed. But again, they are two, three or more times as expensive in Thailand than elsewhere.
Most supplements are imported, but some may be made locally yet still be overpriced to match the imports.
Whether a person should take vitamins or other health supplements is not the point. If they are legal and considered safe in Thailand and the rest of the world, why should they be so much more expensive here? The same goes for wines, about which much has been written, as well as cheeses and any number of other food items.
Another point to consider: "Imported" name brand shirts or jeans sold in area department stores for twice what they go for in the West might well be made in Thai or Cambodian factories.
Understanding the Thai tax codes is no mean feat for the average person, but it's clear that unrealistic tax rates are largely to blame for the vastly inflated prices citizens and other residents of Thailand are forced to pay for many goods.
If the taxes were designed to give Thai companies a competitive advantage they might be acceptable, even if that goes against the spirit of several trade agreements Thailand has signed onto or is considering. But in many market segments products made by Thai companies are not competitive, if the products exist here at all. It appears that the high taxes imposed on many products actually discourage local competition.
Tax rates should be reconsidered category by category to determine if they are fair to the consumer, and moreover, if they are truly beneficial to the economy and to Thai businesses and entrepreneurs.
Given the endemic corruption in the country, it is also fair to ask if tax receipts are always turned over to the public coffers. Another issue to explore is whether high taxes might be used by manufacturers and distributors to justify otherwise unjustifiable price increases.