EV Board Approves Excise Tax Restructuring for Electric Vehicles, Tying Imports to Domestic Investment

RegulationIndustry
โดย Kaohoon·TH·Read original
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The National Electric Vehicle Policy Committee, or EV Board, approved in principle a restructuring of the excise tax on electric vehicles. The meeting was chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, and the results were disclosed on 10 September 2026 by Narit Therdsteerasukdi, Secretary-General of the Board of Investment, in his capacity as a member and secretary of the EV Board. The new tax structure rests on five principles: using imports to attract long-term investment by tying import conditions to actual domestic production investment; pushing Thailand to become a regional and global hub for electric vehicle manufacturing and export; upgrading the use of high-value-added domestic parts and raw materials; creating fair competition between domestically produced and imported vehicles; and developing domestic parts manufacturers. Tax rates will be tiered according to the level of investment, production, and value added in Thailand. Electric vehicles imported by importers with no domestic manufacturing plant will face higher taxes, while manufacturers that already have plants in the country but need to import certain models for market testing will have import volumes set according to the economic value they create in Thailand. The meeting also approved the appointment of two subcommittees: the Subcommittee on Promotion of the Modern Automotive and Parts Manufacturing Industry, chaired by the Minister of Industry, and the Subcommittee on Development of Infrastructure to Support Electric Vehicle Charging, chaired by the Minister of Energy. It also assigned the Permanent Secretary of the Ministry of Finance to study additional measures to promote the use and production of commercial electric vehicles and electric motorcycles. In the first seven months of 2026, BEV registrations totaled 126,950 units, up 88 percent from the same period a year earlier, while registrations of xEV vehicles overall, comprising BEV, HEV, and PHEV, accounted for 55 percent of all vehicle registrations. On investment, as of 31 August 2026 the Board of Investment had granted promotion to 189 electric vehicle and related projects, with investment value of 151.372 billion baht. Battery manufacturing had the highest investment value at 87.073 billion baht, followed by BEV manufacturing at 38.563 billion baht and key parts manufacturing at 12.558 billion baht. Promoted charging station projects plan to install a total of 23,135 charging heads, of which 10,249 are quick chargers, or about 85 percent of the target of 12,000 heads in 2030. Automakers with production bases in Thailand, namely Mitsubishi, Honda, Mazda, and Isuzu, plan additional investment totaling more than 50 billion baht to develop new models, upgrade production lines with automation and robotics, and accommodate HEV, MHEV, and various forms of electric vehicle technology.

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