Cut in excise tax for eco-car production extended until 2025
The cabinet this week has approved a move to extend the cut in excise tax for eco-car manufacturers from 17% to 14% for another two years, or until the end of 2025, a news source said on Thursday.
The measure, which was originally slated to end on December 31, had been proposed by the Industry Ministry in a bid to allow eco-car manufacturers time to shift towards electric vehicles (EV) production.
The source said the National Electric Vehicle Policy Board (EV Board) submitted its study on the automotive market to the cabinet, suggesting that the tax cut on eco-cars should be extended.
The study found that manufacturers have suffered from the impact of the pandemic and the semiconductor shortage, causing their transition toward EV manufacturing to slow.
The EV Board also underscored that the move would maintain Thailand’s status as an eco-car production champion, not least because the vehicles have outstanding features in terms of economy, safety, and low emissions, which are in line with the global standard of automotive industry.
The cabinet also tasked the Finance and Industry ministries to develop measures to support a smooth transition toward EV manufacturing, as well as the long-term development of EV industries under the policies of the EV Board.
