A court in Thailand has ruled that Toyota’s local division must pay 10 billion baht ($272.11 million) in extra taxes after it imported components not subject to reduced tariffs.
Toyota had been importing parts from Japan when building the Prius in Thailand between 2010 and 2012. In 2019, a court ruled that these imported parts should have been treated as “knock-down kits,” Reuters reports, meaning they are hit with an 80 per cent tariff rate as opposed to the 30 per cent tariff for auto parts under the Japan-Thailand Economic Partnership Agreement (JTEPA).
This month, Thailand’s Supreme Court upheld the 2019 ruling. Toyota said it had been paying the lower tax rate based on JTEPA for the parts but confirmed it will comply with the latest ruling. The taxes are owed on more than 20,000 Prius models that were assembled at Toyota’s Gateway factory.
Read Also: Toyota Says The Prius Is An Icon, Next Generation To Retain Hybrid Powertrain
In an age where all-electric cars are becoming more commonplace, it is understood that a fifth-generation Prius is just around the corner and apparently, it will remain a plug-in hybrid. It is claimed that the new vehicle will be based on the Europe-specific E3 platform that combines elements from the GA-C architecture of the Corolla and C-HR with the dedicated bZ electric architecture.
Toyota believes that plug-in hybrids will serve a very important role for it over the coming decade. The new Prius may feature the same bipolar nickel-metal hydride battery as the new Toyota Aqua, resulting in improved output and efficiency.
