In brief
Thailand’s cabinet has decided to increase the excise tax on fully‑imported battery‑electric and range‑extended electric vehicles to 35% effective 1 January 2027, up from 10% and 15% respectively. The measure, announced by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas in Udon Thani, aims to level the playing field for cars built in Thailand, strengthen the production chain, and create jobs in a bid to position the country as a regional hub for green vehicle manufacturing. The policy reflects guidance from the National Electric Vehicle Policy Committee and the Finance Ministry on boosting local production of key parts amid rising competition from imported cars not covered by incentives.
Thailand’s cabinet on Friday approved a steep increase in the excise tax on fully‑imported battery‑electric and range‑extended electric vehicles (EVs) to 35% effective 1 January 2027. The new rate replaces the current 10% for BEVs and 15% for REEVs.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced the decision at a cabinet meeting in Udon Thani, explaining that the move seeks to protect the domestic auto industry and spur investment in local EV production.
According to Xinhua, the policy is intended to strengthen Thailand’s production chain, create jobs for Thai workers, and upgrade their skills, positioning the country as a regional and global hub for green vehicle manufacturing.
Paull Tan also reported that the cabinet agreed on the 35% rate for fully‑imported vehicles, citing the same figures for BEVs and REEVs as the current 10% and 15% rates.
Thairath confirmed that the excise tax will be applied to all fully‑imported EVs starting 1 January 2027, reiterating the tax details and the effective date.
While all outlets report the tariff hike, only Xinhua highlighted the broader intent to boost local production and employment as part of Thailand’s green vehicle strategy.