Finance Ministry Plans 30% Excise Tax on Fully Imported EVs

Khaosod•Economy•9m ago

Reader Briefing

The Thai Ministry of Finance plans to implement a 30% excise tax on fully imported electric vehicles to incentivize local manufacturing.

•The Ministry of Finance targets an excise tax rate of approximately 30% for completely built-up (CBU) electric vehicles.
•A conclusion on the tax structure is expected by September.
•The policy aims to increase domestic investment, production, and the use of local parts.
•The National EV Policy Committee has approved a three-tier excise tax structure in principle.

Overview

•The Ministry of Finance is discussing the electric vehicle (EV) excise tax structure with the automotive industry.
•The Ministry of Finance proposes an excise tax rate of approximately 30% for fully imported (CBU) electric vehicles.
•A final conclusion on the tax structure is expected within September.
•Low import taxes previously led to an influx of affordable Chinese EVs, causing intense price competition and pressure on existing domestic production bases.
•Ekniti Nitithandprapas stated that general customs duties cannot be raised due to Free Trade Agreement (FTA) obligations, making excise tax the primary tool for differentiation.
•The National EV Policy Committee approved a three-tier tax system: highest for fully imported EVs, medium for domestic assembly with some imported parts, and lowest for domestic production.
•Nine EV manufacturers are currently operating in Thailand, with some starting to export locally produced vehicles.
•The government identifies EV and future mobility as one of seven core industries to drive future economic growth.

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Key Quotes

Ekniti Nitithandprapas

"The tax rate 'should be at a level' of approximately 30%, the key goal of which is to create incentives for car manufacturers to invest and establish more production bases in Thailand."

อัตราภาษี ‘น่าจะอยู่ที่ระดับ’ ประมาณ 30% ซึ่งเป้าหมายสำคัญคือการสร้างแรงจูงใจให้ผู้ผลิตรถยนต์เข้ามาลงทุนและตั้งฐานการผลิตในไทยมากขึ้น

Key Entities

Person

Ekniti Nitithandprapas(เอกนิติ นิติทัณฑ์ประภาศ)

Deputy Prime Minister and Minister of Finance.

Organization

Ministry of Finance(คลัง)ℹ️

The government body preparing to collect a 30% excise tax on imported EVs.

National EV Policy Committee(คณะกรรมการนโยบายยานยนต์ไฟฟ้าแห่งชาติ)

The body that approved the principles of the three-tier excise tax structure.

Place

Thailand(ไทย)ℹ️

The country implementing EV tax reforms to attract investment and protect its automotive base.