BANGKOK, Nov. 3 — Thailand will raise the excise tax on imported battery-electric vehicles (BEVs) and range-extended electric vehicles (REEVs) to 35 percent from Jan. 1, 2027, the government said on Tuesday.
The move aims to protect the domestic auto industry and draw investment into local production. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the cabinet approved the change at a meeting held in the northeastern province of Udon Thani.
Imported BEVs are currently taxed at 10 percent and imported REEVs at 15 percent. BEVs run only on battery power and are driven by electric motors.
REEVs combine fuel and electric power, can be plugged in to charge, and are driven only by electric motors.
The change follows decisions by the National Electric Vehicle Policy Committee, the Finance Ministry said in a statement.
The committee wanted to encourage local production of key vehicle parts and keep the industry stable as it faces more competition from imported cars that are not in government incentive schemes.
Ekniti said the goal is to strengthen the production chain, create jobs for Thai workers, and upgrade their skills while helping the domestic automotive industry move beyond its traditional manufacturing base and become a regional and global hub for making and exporting green vehicles.
The move would make competition fairer for cars built in Thailand and encourage investment in local EV production, he noted, adding that domestic carmakers and parts suppliers would benefit directly through higher production and employment across the supply chain, making the Thai auto and parts industry more competitive. (Namibia Daily News/Xinhua)
