Excise Department to Use CO2 as New Criterion for Restructuring Vehicle Taxes

Regulation
โดย InfoQuest·TH·Read original
Summary · why it matters

The Excise Department is preparing to use carbon dioxide (CO2) emission levels as the main indicator in restructuring the new vehicle excise tax, aiming to reduce the impact on internal combustion engine (ICE) vehicle manufacturers and support the transition to clean energy. The Director-General of the Excise Department, Mr. Pornchai Thiraveja, revealed that the new tax structure will not grant exclusive benefits to battery electric vehicles (BEVs) but will allow manufacturers to adapt to hybrids such as HEV, PHEV, or EREV to maintain competitiveness and employment in the existing industry. The policy, assigned by Mr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, and Mr. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, includes not focusing solely on importing electric vehicles, expanding production capacity for export, and using high-value domestic parts. The department is also considering adjusting taxes on parts related to the environment and clean energy. The measures will be proposed to the National Electric Vehicle Policy Committee (EV Board) and the Cabinet. Meanwhile, the previous EV 3.0 and EV 3.5 promotion measures have been successful, with more than 8-10 large electric vehicle manufacturers such as BYD, MG, and GWM establishing production bases. There are approximately 170,000 electric vehicles in use, cumulative investment of 140 billion baht, maximum production capacity of 380,000 vehicles per year, and employment of over 25,000 positions.

Impact on stocks 2

Others▲ · 2 stocks
BYD Co Ltd Class A
002594
± MixedRegulationrelevance

Named among EV manufacturers that established Thai production bases; the proposed CO2-based tax restructuring that would drop exclusive BEV benefits is not yet decided, so impact is unclear.

Great Wall Motor Co Ltd
601633
± MixedRegulationrelevance

Named as one of the EV makers with a Thai production base under the previous EV 3.0/3.5 measures; new CO2-based excise restructuring is still only proposed, so impact is unclear.

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