Excise Department Outlines 3 Principles for EV Tax Reform

Matichon•Economy•22d ago

Reader Briefing

The Excise Department is developing a new motor vehicle tax structure based on CO2 emissions to support the transition toward an electric vehicle hub.

•The Excise Department is discussing tax reform principles to propose to the National Electric Vehicle Policy Committee (EV Board) and the Cabinet.
•The reform is based on three principles: Investment-Driven Import, becoming a Regional Export Hub, and increasing High Value-Added Local Content.
•CO2 emission levels will be used as the primary index for tax measures to support both BEVs and hybrid vehicles (HEV, PHEV, EREV).
•Previous EV 3.0 and EV 3.5 measures have resulted in over 8-10 large EV factories in Thailand, including BYD and MG.

Overview

•The Ministry of Finance and the Excise Department are discussing the details of tax reform principles for proposal to the EV Board and the Cabinet.
•Pornchai Theeravech stated that the reform follows three principles: attracting long-term investment via imports, becoming a Regional EV Hub, and promoting high value-added local parts.
•The Excise Department plans to use CO2 emission levels as the main indicator for tax classifications to support the transition to clean energy.
•The proposed tax structure includes hybrids such as HEV, PHEV, and EREV to prevent excessive impact on the competitiveness and employment of the traditional internal combustion engine industry.
•The Excise Department is considering adjusting the excise tax structure for environmentally friendly and clean energy products, including various vehicle parts beyond batteries.
•Previous EV 3.0 and EV 3.5 measures have attracted 8-10 large EV factories, including BYD and MG, with approximately 170,000 EVs currently in use in Thailand.
•The EV and parts industry has generated accumulated investment of 140,000 million baht, with a maximum production capacity of 380,000 units per year and over 25,000 jobs.

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Key Quotes

Pornchai Theeravech

"This approach will help assembly plants and parts groups in the traditional internal combustion engine automotive industry apply existing skills and capabilities to transition technology gradually and sustain existing labor."

แนวทางนี้จะช่วยให้กลุ่มโรงงานประกอบและกลุ่มชิ้นส่วนในอุตสาหกรรมรถยนต์สันดาปแบบเดิมสามารถประยุกต์ทักษะและความสามารถเดิมเพื่อก้าวเปลี่ยนผ่านเทคโนโลยีอย่างค่อยเป็นค่อยไป และประคองแรงงานเดิมไว้

Key Entities

Person

Pornchai Theeravech(พรชัย ฐีระเวช)

Director-General of the Excise Department.

Ekniti Nitithanprapas(เอกนิติ นิติทัณฑ์ประภาศ)ℹ️

Deputy Prime Minister and Minister of Finance who provided three guiding principles for the tax reform plan.

Organization

Excise Department(กรมสรรพสามิต)ℹ️

The government agency responsible for discussing and proposing motor vehicle tax reform principles.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The ministry discussing tax reform details with the Excise Department.

National Electric Vehicle Policy Committee (EV Board)(คณะกรรมการนโยบายยานยนต์ไฟฟ้าแห่งชาติ (EV Board))

The committee to which the tax reform principles will be proposed.

Cabinet(คณะรัฐมนตรี (ครม.))

The government body to which the tax reform principles will be proposed.

BYD

One of the large electric vehicle companies that has established a production base in Thailand.

Policy

EV 3.0

A previous promotion measure intended to encourage consumers to use EV technology and require domestic production.

EV 3.5

A previous promotion measure intended to encourage consumers to use EV technology and require domestic production.