EV Board gives businesses new tax incentives for using electric commercial vehicles
The National Electric Vehicle Policy Committee (EV Board) has agreed to grant tax concessions to businesses that procure electric buses and trucks, an official said.
Narit Therdsteerasukdi, secretary-general of the Office of the EV Board, said on Wednesday that the board has also given the go-ahead to new measures promoting the use of e-buses and e-trucks in a bid to reduce carbon emissions and help Thailand achieve its net-zero goal.
Narit was speaking to reporters after the EV Board met at Government House, with Prime Minister Srettha Thavisin chairing the meeting.
He said the board expects the measures to also promote the manufacturing of large commercial electric vehicles.
As for the latest tax benefit, he said the board agreed to let corporations write off the purchase of e-buses or e-trucks. The write-off can be worth two times the value if the vehicle is procured locally, and 1.5 times the value if imported, he said. The board has not set a price ceiling for the purchases.
Separately, the Revenue Department has been tasked with drafting new regulations for implementing the measures, which will be in use until the end of next year.
Narit explained that these measures were being added to the existing EV3 and EV3.5 measures that were introduced earlier to promote the use of electric cars, pickups and motorcycles.
“The board believes the new measures will lead to the use of some 10,000 large commercial electric vehicles and this will make a significant dent in carbon emissions,” he added.
Under this measure, foreign investors will be allowed to seek financial support and investment privileges from the Competitiveness Enhancement Fund under the Board of Investment (BOI).
This measure would encourage foreigners to invest in manufacturing EV battery cells, which would be a primary part of the EV industry.
Preliminary conditions for foreign investors to receive financial support and investment privileges are:
• Must be a leading brand used by EV makers
• Must have operational plans for manufacturing battery cells as well as be able to produce battery cells for energy storage system (ESS)
• Must be capable of producing batteries with a capacity of 150 watt-hours per kilogram (Wh/kg)
• Battery cells must have more than 1,000 recharging cycles
• Must apply for support within 2027
Narit added that the panel in charge of the fund will draft detailed guidelines for battery manufacturers to seek support from the government.
“Batteries are key to the EV industry. Currently, there are battery modules and battery pack makers, but we lack primary battery cell makers,” Narit said.
He explained that manufacturing battery cells requires advanced technology and the industry will support other industries that require an energy storage system.
The EV board has also agreed to revise the EV3.5 measures in the second phase of enforcement such as extending the measure to cover 10-seat passenger cars.
E-bikes that have less than 3kWh capacity will also be granted privileges, provided they can cover more than 75 kilometres per full charge.
Narit added that the EV3 and EV3.5 packages had led to the registration of 76,000 electric vehicles last year, reflecting a 6.5 times increase from the year before.
The BOI, meanwhile, has approved 103 EV manufacturing projects as of the end of last year with a combined investment value of 77.19 billion baht, he said. These include 18 EV manufacturing projects worth 40 billion baht, nine e-bike makers worth 848 million baht, and three e-bus and e-truck-making projects worth 2.2 billion baht.
The BOI also approved 39 ESS projects worth a combined 23.9 billion baht.
