Finance Ministry proposes 3-tier EV tax to boost local production

Thansettakij•Economy•10d ago

Reader Briefing

The Ministry of Finance and Excise Department are proposing a three-tier excise tax structure for electric vehicles to prioritize domestic production over imports.

•The Ministry of Finance expects to propose the new EV tax structure for Cabinet approval within September.
•The proposed tax system consists of three tiers based on investment levels and the proportion of local content.
•Tier 3 will target importers with no investment plans in Thailand and is expected to be implemented first to slow the influx of imports.
•The National Electric Vehicle Policy Board (EV Board) met for the 1/2026 session to discuss these measures.

Overview

•The Excise Department proposed a 3-tier tax structure to maintain Thailand's position as a regional automotive production hub.
•The Ministry of Finance and Excise Department are designing tax rates based on investment levels and local content usage.
•The EV industry accounts for approximately 2% of Thailand's GDP and roughly 15% of total export value.
•The Excise Department identified a risk where some EV types have very high import proportions, impacting the domestic production base.
•The 3-tier tax mechanism has received approval in principle from three automotive associations and private sector operators.
•The Ministry of Finance expects to submit the proposal to the Cabinet for approval within September.
•The Permanent Secretary of the Ministry of Finance has been assigned by the EV Board to study promotion guidelines for commercial EVs, such as buses, trucks, and electric motorcycles.
•Over the past 5 years, EV 3.0-3.5 measures resulted in EVs exceeding 50% of all new vehicle registrations.

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Source: Thansettakij (Original)

Key Quotes

Lavaron Sangsinith

"We cannot yet disclose the EV excise tax adjustment rates because it is the authority of the Cabinet to approve them further."

เรายังไม่สามารถเปิดเผยอัตราการปรับภาษีสรรพสามิตรถยนต์อีวีได้ เนื่องจากเป็นอำนาจของครม. ที่จะต้องเห็นชอบต่อไป

Pornchai Teeravech

"This measure will be driven by the excise tax mechanism alone, without using subsidy budgets, unlike the EV3.0 and EV3.5 measures in the past."

มาตรการครั้งนี้จะขับเคลื่อนด้วย กลไกภาษีสรรพสามิตเพียงอย่างเดียว โดยไม่ใช้งบประมาณอุดหนุน ต่างจากมาตรการ EV3.0 และ EV3.5 ในอดีต

Key Entities

Person

Lavaron Sangsinith(ลวรณ แสงสนิท)

Permanent Secretary of the Ministry of Finance.

Pornchai Teeravech(พรชัย ฐีระเวช)

Director-General of the Excise Department.

Nirut Todsathirasak(นฤตม์ เทอดสถีรศักดิ์)

Secretary-General of the Board of Investment (BOI) and secretary of the EV Board.

Organization

Ministry of Finance(กระทรวงการคลัง)ℹ️

The ministry responsible for considering and proposing EV excise tax rates to the Cabinet.

Excise Department(กรมสรรพสามิต)ℹ️

The agency responsible for designing the 3-tier EV excise tax structure.

Cabinet(คณะรัฐมนตรี)

The body with the authority to approve the proposed EV excise tax rates.

National Electric Vehicle Policy Board(คณะกรรมการนโยบายยานยนต์ไฟฟ้าแห่งชาติ)

Also known as the EV Board, it held meeting 1/2026 to discuss the automotive industry.

Board of Investment(คณะกรรมการส่งเสริมการลงทุน)

Also known as BOI, providing secretarial support to the EV Board.

Policy

EV 3.0(EV3.0)

A previous EV promotion measure that used budget subsidies.

EV 3.5(EV3.5)

A previous EV promotion measure that used budget subsidies.