Thailand: EV & Hybrid Car Tax Cuts Planned

Thansettakij•Economy•20d ago

Reader Briefing

The Department of Land Transport is drafting new regulations to reduce annual taxes by 80% for electric, hybrid, and plug-in hybrid vehicles for three years.

•The Department of Land Transport is preparing to reduce annual taxes for electric vehicles (EV), hybrid, and plug-in hybrid cars.
•The proposed tax reduction aims to encourage environmentally friendly transportation and reduce living costs.
•Draft legislation proposes an 80% tax cut for new vehicles registered within three years of the decree's enforcement.

Overview

•The Department of Land Transport is preparing to consider reducing annual taxes for electric cars (EV), hybrid, and plug-in hybrid vehicles.
•The reduction is aimed at promoting a shift towards environmentally friendly transportation and logistics, and reducing public living costs.
•The Department of Land Transport has drafted two laws: one for electric vehicles and another for hybrid and plug-in hybrid vehicles, currently open for public comment.
•The previous Royal Decree reducing annual taxes for electric vehicles expired on November 10, 2025, leading to 316,657 registrations, 2.46 times higher than projected.
•The Ministry of Transport stated that the draft Royal Decree for electric vehicles aims to reduce the annual tax rate by 80% for factory-new vehicles registered within three years of enforcement, based on the rates in the Automobile Act B.E. 1979.
•A 3-year period is set from the date of vehicle registration for the tax reduction.
•Regarding hybrid and plug-in hybrid vehicles, the Ministry of Transport cited the need to promote environmentally friendly transportation and logistics, and to mitigate the impact of the energy crisis on public living costs due to Middle Eastern conflicts.
•The principles of the draft Royal Decree for hybrid and plug-in hybrid vehicles include an 80% reduction in the annual tax rate for factory-new vehicles registered within three years of the decree's effective date, based on the Automobile Act B.E. 1979.

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Key Entities

Organization

Department of Land Transport(กรมการขนส่งทางบก)ℹ️

The Thai government agency responsible for drafting legislation to reduce annual taxes on vehicles.

Ministry of Transport(กระทรวงคมนาคม)ℹ️

The ministry overseeing the Department of Land Transport and involved in the policy for vehicle tax reductions.

Law

Electric Vehicles (EV)(รถยนต์ไฟฟ้า (EV))

Vehicles fully powered by electricity, subject to proposed tax reductions.

Hybrid Cars(รถยนต์ไฮบริด)

Vehicles that combine an internal combustion engine with an electric motor, subject to proposed tax reductions.

Plug-in Hybrid Cars(รถยนต์ปลั๊กอินไฮบริด)

Hybrid vehicles with a larger battery that can be charged by plugging into an external power source, subject to proposed tax reductions.

Draft Laws(ร่างกฎหมาย)

Proposed legislative documents for tax reductions on electric and hybrid vehicles.

Royal Decree Reducing Annual Tax for Electric-Powered Vehicles B.E. 2022(พระราชกฤษฎีกาลดภาษีประจำปีสำหรับรถที่ขับเคลื่อนด้วยพลังงานไฟฟ้า พ.ศ. 2022)

A previous decree that provided tax reductions for electric vehicles, which expired on November 10, 2025.

Automobile Act B.E. 1979(พระราชบัญญัติรถยนต์ พ.ศ. 1979)

The primary legislation in Thailand governing automobiles, referenced for annual tax rates.

Automobile Act (No. 14) B.E. 2007(พระราชบัญญัติรถยนต์ (ฉบับที่ 14) พ.ศ. 2007)

An amendment to the Automobile Act B.E. 1979, which further defined annual tax rates.