The measures that have been proposed by the Excise Department include subsidies for battery raw materials, modular battery in which the deteriorated parts can be replaced, and battery pack that is installed under the vehicle’s chassis.
The amount of subsidy will depend on the wattage capacity and type of batteries, said Natthapol Rangsitpol, the ministry’s permanent secretary.
He added that after the measures were approved by the committee, Energy Minister Supattanapong Punmeechaow, who chairs the EV board, will propose the move for Cabinet approval the following day, so that the measures can be announced as soon as possible.
Domestic battery manufacturers have been waiting for government subsidies since early 2022, but the committee has prioritised approving subsidies for EV manufacturers in a bid to attract vehicle buyers, Natthapol pointed out.
In March last year, the Cabinet approved the reduction of import duties for EV up to 150,000 baht on condition that the EV makers must also make them in Thailand later. The measure has resulted in a spike in new EV registrations at over 29,400 vehicles by the end of November 2022 due to lower prices.
Natthapol added that in the next phase the committee would study the possibility of reducing the tax structure of EV battery, which currently has a flat 8% rate.
“The move aims to reduce battery tax to as low as 1% for manufacturers who have implemented recycling technology in their batteries to minimise environmental impact,” he said. “Since the government aims to have up to 700,000 battery-powered EVs on Thai streets by 2030, Thailand will have hundreds of thousands of battery e-waste to deal with in the future.”