The Thai government’s new preferential excise tax rates for hybrid and electric vehicles are set to drive greater demand for this type of vehicle, said vice-chairman of the Federation of Thai Industries (FTI), Suparat Sirisuwanangkura as reported by the Bangkok Post. Currently, sales of hybrid and fully electric vehicles were limited due to the unattainable retail prices, according to the report.
Under the current tax regime, passenger pick-up vehicles (PPVs) with CO2 emissions of less than 175 g/km are subject to 25% tax, while double-cab pick-up trucks with CO2 emissions of less than 175 g/km will taxed at 12%. The new tax structure will reduce these to 23% and 10% respectively.
For passenger cars with CO2 emissions below 100 g/km, excise tax under the current regime is 10%; below 150 g/km, tax is 20%; and below 200 g/km, 25%. The new structure will reduce these figures to 5%, 10% and 12.5% respectively. For full battery-electric vehicles (BEVs), the excise tax drops from 10% to two percent in the new structure.
Announced on the Royal Gazette on Tuesday, the new excise tax incentives are meant to promote local Thai production of EVs and hybrids, and the incentives expire late in 2025. The Thai Board of Investment also included 10 more key EV parts to the list which will be income tax-exempt for eight years.
In March this year, Thailand’s BoI approved a set of promotional privileges for EVs, particularly for the local production of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). The programme covers passenger cars, pick-up trucks and buses, with different rates of privileges based on the technology for their production.
These include batteries, traction motors, battery management services, AC/DC converters, inverters, portable electric vehicle chargers, electrical circuit breakers and EV smart charging systems. Manufacturers that invest in these items will gain additional privileges and a 50% reduction on corporate income tax for a further five years, if they establish their plants in the Eastern Economic Corridor and submit applications by Dec 29.
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Thai Government is focused. They got no politics. They don’t demand the foreign car company to give 30% free of the local entity.
Thai Government also never say the local entity must have Chairman who is ex Government servant who gets free gaji buta. No need to go office or do work. Just once a year attend AGM. Buta buta get free gaji
Our EV initiative, one day got one day hilang. Like our EEV initiative. Honda and Toyota invested billions to set up CKD plants to CKD Jazz, Civic and Prius. But suddenly, gomen just change their mind and pull out the tax incentive. Jap car companies lost billions. Yoyo policy.
Malaysian business logic: If your business good, they tax you. If your business continue good, they buy you over. After they own you, they reduce QC for more profit. Once you are making loss, they sell you to Chinese.
For them, it is all about money. Who care about your products and quality?
Few years back MAI said gomen pushing rakyat to buy EEV. They said we should all buy Hybrids to support this move.
So many people bought Hybrids especially Prius, A6 Hybrid, Jazz and Civic as well as Insight cause got tax incentives.
Then suddenly gomen decided not to give any tax rebates. The buyers saw their cars plummet in value. Nobody dared to touch a hybrid in the 2nd hand mudah market for fear of yo yo policy.
Brand new Prius shot up to RM250k. Parts prices also shot up accordingly.
Now those buyers regret so much. They cannot even sell their cars and they have to bear parts prices that are so high.
I don’t understand your Kunta logic. Put part prices aside…If the owner bought the a Prius at 100K few years back with tax incentives, then they should be easily sell their car now which has gone up to 250K without tax incentives?
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Msians dont know how to develop their car industry. They only to how to come here and say oh wai oh wai oh wai
ok…thai Gov…how about Malaysia? increase??
Any response from our beloved government?
Got…tidak apa respond
Read Madani reply below. Gomen very happy with current local standard. Proudly 50% new vehicles now meet the Jaguh Kampung standard. Syukur Malaysia Aman.
Kerajaan lebih menitikberatkan pembangunan sektor automotif secara menyeluruh.
Kira-kira 50 peratus kenderaan baharu yang dijual dalam pasaran tempatan dalam tahun ini dijangka kenderaan cekap tenaga (EEV).
Penentuan standard EEV di MY adalah jumlah penggunaan minyak untuk jarak tertentu berdasarkan kelas berat kenderaan.
That’s because Msia automotive sector is NOT ABLE to meet those emmission standards. Not just Proton unable to produce hybrids but also the fuel industry. Still stuck in defunct Euro2 emission standard. So in order to save face, some sort of compromised Jaguh Kampung standard was enacted to make it look like we too have something similar.
Protecting the local giants at the expense of modernisation and lagging behind current global standards. A very common theme here today in Msia. Must save face at all costs.
It wasn’t long ago that Msia was the leader in modernisation in ASEAN but today we’re already lagging behind Indonesia & Thailand. Soon we will join Brunei in ASEAN Club of Doomed.
Leader? Have u forgotten about SG? So how to belip the rest of what u said?
If we are going to emission based, the already loss making proton wont able to comply, their cars will be worse off and eventually fail. Fuel wise, petronas will have to upgrade their refinery and buy better quality crude oil. These will cut into their profit. Lobbyist went into drama mode to stop this change. The whole world are going to emission based regime but we still stuck with archaic standard. All because of greed and stupidity.
So what went wrong with their previous system? Ohh… down of tomyam…
AP here AP there. BNM should investigate it as a quick rich scheme.
A Flip flop govt of Malaysia…….Whadya expect?
beribu ribu tahniah thai berjaya
tax incentive till 2025, good job. Simple and straightforward, this is what the manufacturers want and put a long term commitment in the country.
Look at our Malaysia, tax break renewal base on yearly review, last minute announcement, infamous flip-flop policies and delays. Who dares to expand the EV/Hybrid production in Malaysia?
Meanwhile in Malaysia, tax, tax, and more tax.
Mean time….somewhere in putrajaya…..they want to dig up 20 yr old case on forex loses.
Malaysia gomen only know how to rip money from the rakyat..bloody gomen
I look at it differently because Thai government knows that vehicle technology is changing for the future e.g EV and is not “dragged” as a net producer of oil.