Private Sector Urges EV Tax Reform to Protect Thai Supply Chain

Matichon•Economy•1d ago

Reader Briefing

Trirat Sirichantaropas urges the Thai government to adjust EV taxes and investment conditions to prevent the erosion of the domestic automotive supply chain.

•Trirat Sirichantaropas warns that excessive imports of Chinese EVs are impacting the domestic combustion engine market and Japanese manufacturers.
•Trirat Sirichantaropas supports Deputy Prime Minister Ekniti Nitithanprapas's plan to reduce taxes for locally produced cars and increase taxes for imported EVs without local production bases.
•The private sector emphasizes that EV promotion must prioritize technology transfer, local parts usage, and job creation over simply lowering consumer prices.
•Trirat Sirichantaropas notes that Indonesia's efforts to attract Japanese automakers to relocate production is a warning sign for Thailand.

Overview

•Trirat Sirichantaropas states that while the transition to electric vehicles is unavoidable, it must not destroy the existing production base and supply chain created by Japanese automakers.
•Trirat Sirichantaropas argues that many Chinese EVs are primarily assembled in Thailand using imported parts, failing to create a continuous domestic supply chain like Japanese investments did.
•Deputy Prime Minister Ekniti Nitithanprapas plans to restructure excise taxes by lowering them for locally made vehicles and raising them for imported EVs that do not establish local production.
•Trirat Sirichantaropas suggests the government should set clear conditions for tax benefits, requiring investors to establish factories, hire local labor, and use domestic parts.
•Trirat Sirichantaropas warns that if Thailand offers fewer benefits than competitors or creates unfairness, Japanese automakers like Toyota and Honda may relocate production to countries like Indonesia.
•Trirat Sirichantaropas suggests reviewing FTAs and import privileges to close tax loopholes based on actual benefits generated for Thailand.
•Thailand is pursuing the export of automotive parts to Australia and maintaining trade agreements with New Zealand.

Full article content is available on the original source.

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Source: Matichon (Original)

Key Quotes

Trirat Sirichantaropas

"Today we use EVs as an industrial driver with environmental goals as the main focus, but we have not fully considered how they will extend economic benefits to Thailand in the long term."

วันนี้เราใช้ EV เป็นตัวขับเคลื่อนอุตสาหกรรม โดยมีเป้าหมายด้านสิ่งแวดล้อมเป็นหลัก แต่ยังไม่ได้คิดให้ครบว่าเกิดการต่อยอดทางเศรษฐกิจกับประเทศไทยอย่างไรในระยะยาว

Trirat Sirichantaropas

"If we do not take care of those who pay taxes and create employment in Thailand, and one day they actually move, Thailand will be severely hurt."

ถ้าเราไม่ดูแลคนที่เสียภาษีและก่อให้เกิดการจ้างงานในประเทศไทย แล้ววันหนึ่งเขาย้ายไปจริง ประเทศไทยจะเจ็บหนัก

Key Entities

Person

Trirat Sirichantaropas(ตรีรัตน์ ศิริจันทโรภาส)

CEO of New Energy Plus Solutions Co., Ltd. (NEPS) and expert advisor to the Energy Committee.

Ekniti Nitithanprapas(เอกนิติ นิติทัณฑ์ประภาศ)ℹ️

Deputy Prime Minister and Minister of Finance who plans to adjust the automotive excise tax structure.

Organization

New Energy Plus Solutions Co., Ltd.(บริษัท นิว เอ็นเนอร์จี พลัส โซลูชั่นส์ จำกัด)

A company led by CEO Trirat Sirichantaropas.

Energy Committee(คณะกรรมาธิการการพลังงาน)

A committee for which Trirat Sirichantaropas serves as an expert advisor.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The ministry led by Minister Ekniti Nitithanprapas.

Toyota(โตโยต้า)ℹ️

A Japanese automaker whose demands reflect problems the government needs to solve.

Honda(ฮอนด้า)ℹ️

A Japanese automaker whose demands reflect problems the government needs to solve.

Place

Thailand(ไทย)ℹ️

The country facing automotive industry transition and competition from Chinese EV imports.

China(จีน)ℹ️

The source of many imported electric vehicles and components entering Thailand.

Indonesia(อินโดนีเซีย)ℹ️

A country attempting to attract Japanese automakers to relocate their production bases from Thailand.

Australia(ออสเตรเลีย)ℹ️

A target market for Thai automotive parts exports.

New Zealand(นิวซีแลนด์)ℹ️

A country with which Thailand has existing trade agreements.

Policy

FTA

Free Trade Agreements that Trirat Sirichantaropas suggests reviewing regarding EV imports.

Law

Excise Tax(ภาษีสรรพสามิต)ℹ️

The tax structure being adjusted by the Ministry of Finance to differentiate between local and imported EVs.