Udon Thani:The government has announced an increase in the import tax on electric vehicles (EVs) to 35%. This decision was made by the Cabinet as part of a broader effort to boost domestic vehicle production.
According to Thai News Agency, the restructuring of the excise tax on imported Battery Electric Vehicles (BEVs) and Recycled Electric Vehicles (REEVs) was approved during an official Cabinet meeting held outside Bangkok in Udon Thani Province. The new tax rate, which will be effective from January 1, 2027, raises the tax from the previous 10-15% to 35%.
Dr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, emphasized that the resolution aligns with the National Electric Vehicle Policy Committee's meetings held in 2025 and 2026. These meetings instructed the Excise Department to implement measures to incentivize investment in domestic manufacturing and assembly processes, maintaining the stability of the Thai automotive industry amid competition from imported vehicles.
Dr. Ekniti further detailed the key principles of the tax restructuring it is designed to drive investment, establish Thailand as a regional and global EV hub, and upgrade the use of high-value-added domestic components. The initiative aims to strengthen the production chain, create jobs, and enhance Thai labor skills, positioning the country as a future hub for environmentally friendly vehicle production and export.
The restructuring aims to promote fair competition for domestically produced vehicles, encourage investment in electric vehicle production, and benefit local manufacturers in terms of production, employment, and supply chain enhancements.