Special Tax Rate to promote Electric Vehicles Production

Mr. Uttama Savanayana, Ministry of Industry stated that the Cabinet meeting resolved to approve the measures to promote electric vehicles production in Thailand by reducing the excise rate. Excise tax rate for hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) will be reduced by half of the normal rate whereas excise tax rate for battery electric vehicles (BEV) will be reduced to 2 per cent from 10 per cent. To be eligible for this reduction, the production project must have been approved by The Board of Investment (BOI) and vehicles must use batteries produced or assembled in Thailand from the 5th year onwards. The Customs Department also responds to this measure by announcing exemption of import tariff for import of BEV as a market trial in the number agreed by the BOI for 2 years.

Source: Naew Na Newspaper, 29 March 2017