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Finance Ministry Weighs 30% Import Tax on EVs to Boost Local Productio

Finance Ministry Weighs 30% Import Tax on EVs to Boost Local Productio

Post Today•Economy•48m ago

Reader Briefing

The Ministry of Finance is considering a 30% excise tax on imported completely built-up (CBU) electric vehicles to encourage foreign manufacturers to establish production bases in Thailand.

  • •The Ministry of Finance may set an import tax of approximately 30% for CBU electric vehicles.
  • •The National Electric Vehicle Policy Board (EV Board) has agreed in principle to a 3-tier excise tax structure based on investment and local content.
  • •The Federation of Thai Industries proposed an import tax rate between 32-50%.
  • •The new tax structure is expected to be clarified by September 2026.

Overview

  • •Ekniti Nitithandprapas, Deputy Prime Minister and Minister of Finance, disclosed via Bloomberg that the Ministry of Finance is considering adjusting the excise tax structure for imported CBU electric vehicles.
  • •The Ministry of Finance aims to incentivize foreign car companies to invest and establish production bases in Thailand instead of only importing finished vehicles.
  • •The Ministry of Finance is currently consulting with the industrial sector to determine a balanced tax rate that considers impacts on operators and the overall market.
  • •The Ministry of Finance and the National Electric Vehicle Policy Board (EV Board) expect the new tax structure to be clear by September 2026.
  • •The National Electric Vehicle Policy Board (EV Board) meeting 1/2026 approved a 3-tier tax structure based on investment levels and the use of Local Content.
  • •The 3-tier structure grants the lowest tax to producers with high local investment and content, mid-level tax to partial investors, and the highest tax to CBU importers with no local investment.
  • •The Excise Department will discuss the specific tax rates and a grace period for operators to adjust with the private sector.
  • •The Federation of Thai Industries proposed an import excise tax for CBU electric vehicles of approximately 32-50% to align with domestic production promotion.

Full article content is available on the original source.

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Source: Post Today (Original)

Key Entities

Person

Ekniti Nitithandprapas(เอกนิติ นิติทัณฑ์ประภาศ)
Deputy Prime Minister and Minister of Finance.
Pornchai Theeravech(พรชัย ฐีระเวช)
Director General of the Excise Department.

Organization

Ministry of Finance(กระทรวงการคลัง)ℹ️
The government body preparing to adjust the excise tax structure for imported electric vehicles.
National Electric Vehicle Policy Board(คณะกรรมการนโยบายยานยนต์ไฟฟ้าแห่งชาติ)
The board, also known as the EV Board, that approved the principle of a 3-tier excise tax structure.
EV Board(บอร์ด EV)
Short name for the National Electric Vehicle Policy Board.
Excise Department(กรมสรรพสามิต)ℹ️
The agency responsible for discussing tax rates and grace periods with the private sector.
Federation of Thai Industries(สภาอุตสาหกรรมแห่งประเทศไทย)ℹ️
The private sector body that proposed an import tax rate of 32-50% for CBU electric vehicles.

Place

Thailand(ไทย)ℹ️
The country where the government seeks to establish electric vehicle production bases.

Policy

EV3ℹ️
A government budget-based measure that the new tax incentives intend to replace.
EV3.5
A government budget-based measure that the new tax incentives intend to replace.