Thailand presses tax accelerator for cheaper EVs
Finance Minister Arkhom Termpittayapaisith revealed on Monday that Thailand faces a delicate balancing act in its transition to electric vehicles.
Arkhom said the National Electric Vehicle Policy Committee is discussing all points carefully as EVs have a higher purchase price than conventional cars. Drivers would not switch to EVs if the price was too high, meaning the government will have to intervene to lower the price difference, he said.
However, the government must also weigh the benefits of changing to EVs against the competitiveness of Thailand’s automotive industry.
The government will also have to consider how the EV business will affect free-trade agreement (FTA) measures, Arkhom said.
He said the Finance Ministry has prepared tax measures for EVs including new import duties and an excise tax. Current import duties on EVs vary from country to country, ranging from zero per cent for Chinese vehicles to 20-80 per cent for Japanese EVs.
Arkhom added that the new tax measures will be issued early this year after thorough study by the National Electric Vehicle Policy Committee but said no date had been set yet.
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Measures to promote the EV sector will include direct support and tax support, he said.
According to Thailand’s National Electric Vehicle Policy, EVs will comprise at least 30 per cent of total domestic vehicle production by 2030 as the country transitions to a low-carbon economy.
