thailandedition
Thailand may impose 30% excise tax on fully imported EVs

Thailand may impose 30% excise tax on fully imported EVs

Prachachat•Economy•1h ago

Reader Briefing

Thailand is considering a 30% excise tax on fully imported electric vehicles to incentivize domestic production.

  • •Ekniti Nitithandprapas announced a potential 30% excise tax for fully imported EVs.
  • •The measure aims to encourage manufacturers to shift production to Thailand.
  • •The government is currently discussing the final tax rate with the automotive industry sector.
  • •A three-tier excise tax structure has been approved in principle by the National EV Policy Committee.

Overview

  • •Ekniti Nitithandprapas told Bloomberg Television on September 14 that Thailand may set an excise tax of approximately 30% for fully imported electric vehicles.
  • •The proposed tax aims to incentivize car manufacturers to produce vehicles within Thailand and strengthen the domestic supply chain.
  • •Low import tax barriers previously led to a surge of affordable electric vehicles from China, causing intense price competition and pressure on large Thai manufacturers.
  • •Ekniti Nitithandprapas explained that general customs duties cannot be increased due to Free Trade Agreement (FTA) conditions, making excise tax a key tool.
  • •The National EV Policy Committee recently approved in principle a three-tier excise tax structure: highest for fully imported EVs, medium for partially assembled in-country, and lowest for those produced in Thailand.
  • •Some manufacturers currently importing from China and Europe are discussing investment in Thailand to benefit from lower excise tax rates.
  • •Ekniti Nitithandprapas stated that there are currently 9 electric vehicle manufacturers operating in Thailand.
  • •The government expects to reach a conclusion on the tax rate within this month.

Full article content is available on the original source.

Read on Prachachat (Thai Version)View in Google Translate

Source: Prachachat (Original)

Key Quotes

Ekniti Nitithandprapas
"We need to protect domestic investment."
เราจำเป็นต้องปกป้องการลงทุนภายในประเทศ

Key Entities

Person

Ekniti Nitithandprapas(เอกนิติ นิติทัณฑ์ประภาศ)
Deputy Prime Minister and Minister of Finance of Thailand.

Organization

Bloomberg Televisionℹ️
The media outlet that interviewed Ekniti Nitithandprapas on September 14.
National EV Policy Committee(คณะกรรมการนโยบายยานยนต์ไฟฟ้าแห่งชาติ)
The committee that approved in principle a three-level excise tax structure for electric vehicles.

Place

Thailand(ไทย)ℹ️
The country seeking to attract EV investment and protect domestic production.
China(จีน)ℹ️
A country from which affordable electric vehicles have flowed into Thailand.
Europe(ยุโรป)ℹ️
A region from which some manufacturers currently import vehicles into Thailand.

Law

Free Trade Agreement(ข้อตกลงการค้าเสรี)ℹ️
The trade agreements that prevent Thailand from increasing general customs duties.