Thailand looking to promote EV adoption by imposing a higher tax on internal combustion engine vehicles

Thailand looking to promote EV adoption by imposing a higher tax on internal combustion engine vehicles

Thailand is continuing to explore ways to promote the take-up of electric vehicles (EVs) in a bid to reduce air pollution in the country. A possible route is to impose a higher tax on vehicles with internal combustion engines (ICE) so buyers will be prompted to look at EVs instead.

As the Bangkok Post reports, the government is scheduled to meet car companies next month to discuss such a proposal. The country’s current excise tax structure for cars is due to end in 2025, and there is apparent interest in considering a more appropriate rate, according to a source from the finance ministry.

The source was reported as saying that the government was looking at bumping the tax for ICE vehicles into the “highest” bracket among car types to encourage people to make the shift to EVs. Any such move would of course only happen in 2026, when the revamped excise tax structure is introduced.

One automaker that has been contacted by the government about discussing the tax increase proposal is Nissan. Atthawit Techawiboonwong, general manager for external and government affairs at Nissan Motor Thailand, said that the company would share with the government its ideas to promote the EV industry and stimulate demand.

Thailand looking to promote EV adoption by imposing a higher tax on internal combustion engine vehicles

He said that car companies are ready to follow EV policies, but more would be needed to ensure that the programme would be a success. He explained that many automakers previously told authorities that increasing the tax alone is not enough.

Atthawit said that other measures such as a corporate income tax rebate for companies buying EVs would be a good start. State agencies should also set a model for EV usage but, as he explained, this is impossible without amended state procurement regulations, which do not support the purchase of battery electric vehicles.

There were also many other elements to consider, including the high cost of EVs and the lack of infrastructure, something that has previously been brought up in discussions about the matter. “We have to consider various factors ranging from demand and prices to EV charging outlets. If buyers are not ready, we can’t sell the cars. EVs are expensive. Are Thais ready to buy them?” he asked.

Thailand looking to promote EV adoption by imposing a higher tax on internal combustion engine vehicles

In August, the country’s industry ministry mooted a plan to introduce a vehicle trade-in scheme involving rebate coupons, and open to all types of car models, including EVs. There had been plans to announce the programme before the end of the year, but earlier this month, the government said that given that details had not been finalised, more time and discussion is needed to flesh out the programme, and so it has been put on hold.

The Thai government has been looking at ways to reduce air pollutants, especially PM2.5 ultra-fine dust particles. According to the nation’s land transport department, the country has about three million cars registered that have been in use for over 15 years, and the eventual aim is to reduce pollution from these with a switch to newer, more efficient vehicles.

What do you think of Thailand’s proposal to promote EV take-up by increasing the tax on ICE vehicles? Would a similar move here work at pushing electrification along faster, or would it have a less than positive impact on industry growth? Share your thoughts on the matter in the comments section below.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Jeremy on Dec 18, 2020 at 11:07 pm

    Thailand should copied Malaysia to impose higher excise tax and car duties instead.

    Like or Dislike: Thumb up 6 Thumb down 6
    • Sick & Tired on Dec 19, 2020 at 10:00 am

      Habeslah Thailand! Now car prices higher than Mesia will go even higher! Their pipul should Ubah to get cheaper cars.

      Like or Dislike: Thumb up 5 Thumb down 2
      • Spin Too Much on Dec 21, 2020 at 9:03 am

        This becuz Thailand Baht is now way more worth than ringgit. During 1980s, when we go Golok. 10 ringgit we can changed 15 Thai Baht.

        But yesterday i go Golok, 10 ringgit i can barely changed to 7 Thai Baht. Mesia pipul should go Thailand to work and earn Thai Baht.

        Like or Dislike: Thumb up 5 Thumb down 4
        • Siam kap on Dec 21, 2020 at 12:43 pm

          Thai cost of living now like crap higher than Mesia kap. Time for us Siam to go work in Mesia and earn RM kap.

          Like or Dislike: Thumb up 2 Thumb down 0
    • Darto on Dec 22, 2020 at 9:03 pm

      They already did. Car imports outside ASEAN is slapped with a 80% import tax.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Thailand Boleh on Dec 19, 2020 at 2:39 am

    Needs proper infrastructure first, does Thailand have proper infrastructure for EVs?

    Like or Dislike: Thumb up 6 Thumb down 11
    • haiya on Dec 19, 2020 at 9:41 am

      ev owners charge at home lah

      Like or Dislike: Thumb up 6 Thumb down 9
      • Contradiction on Dec 19, 2020 at 10:13 am

        Thailand so big not everyone can reach home to charge. Then how, hire elephant to drag the car back home?

        Like or Dislike: Thumb up 6 Thumb down 0
      • Menteri Pasola 60Thn on Dec 19, 2020 at 11:47 am

        Meanwhile Malaysia roadtax still unchanged for past 65Year …. since zaman raja putih British. Benz GLA roadtax rm50…Proton X70 1.8 roadtax rm380. Tesla plak roadtax rm10

        Like or Dislike: Thumb up 6 Thumb down 0
      • We are not ready for ECE on Dec 19, 2020 at 7:02 pm

        Not a proper answer. How about those on long trip & travel. Where and how are they going to charge their cars? Thai government must come out with a comprehensive plan. Merely increasing tax for ICE wont solve a problem.

        Like or Dislike: Thumb up 6 Thumb down 0
    • They will adopt faster than us while our policy makers are still fighting who has the numbers

      Like or Dislike: Thumb up 3 Thumb down 0
    • Don’t be frog in the well. Many countries have caught up and better than Malaysia. Wake up!

      Like or Dislike: Thumb up 1 Thumb down 0
      • Siam kap on Dec 21, 2020 at 12:46 pm

        When you get stranded in middle of nowhere with a juiced out EV, even frog in well stand a better chance of survival than you do kap.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Bieight on Dec 19, 2020 at 10:08 am

    Meanwhile in Malaysia we have flying cars and expensive road tax for ev

    Like or Dislike: Thumb up 4 Thumb down 1
    • Copy Paste on Dec 21, 2020 at 3:41 pm

      Copy paste: “Whilst calmly forgetting that the use of the vehicle constitutes among the biggest creator of pollutants. Humbug”

      Like or Dislike: Thumb up 3 Thumb down 0
  • Forever Peean on Dec 19, 2020 at 11:40 am

    Our govt simply gave us the cheapest petrol in the SEA region for decades. We are grateful and happy for that while we have ample of untapped oil fields. No need for imediate of EV for Malaysia. Thank you and sejahtera Malaysia

    Like or Dislike: Thumb up 4 Thumb down 3
  • Saiful on Dec 19, 2020 at 11:49 am

    What we Malaysia can do instead is focusing on the charging infrastructures. Work out a plan to promote visiting these charging stations as a form of tourism, dedicated to EV owners or companies with EV fleet who runs travel agencies and rental services. I think as far as EV are concerned, vehicles like buses, lorries, and prime movers are the more likely types that should be switched to electric, which means support for companies that runs these vehicles in the form of suitable incentives, charging privileges, dedicated travel routes and time, tax breaks, etc.

    To put it simply, Malaysia should focus EV adoption via commercial vehicles and charging infrastructures first.

    Consumer vehicles can come afterwards when the awareness is more widespread.

    Like or Dislike: Thumb up 1 Thumb down 0
  • zila bakarinah on Dec 19, 2020 at 5:42 pm

    I see malaysia airline logo there

    Like or Dislike: Thumb up 1 Thumb down 0
  • Leafable on Dec 20, 2020 at 12:39 pm

    Well done Thailand! Thats the way to go. Meanwhile Malaysia government still hugging the combustion engine mentality like Toyota.

    Like or Dislike: Thumb up 3 Thumb down 2
    • albag on Dec 20, 2020 at 9:18 pm

      Meanwhile Malaysia government promote tesla ev rm10 roadtax aje. perdana 2.0 roadtax rm420 but bmw 318i 1.5 roadtax rm80…

      Like or Dislike: Thumb up 2 Thumb down 0
    • Copy Paste on Dec 21, 2020 at 3:44 pm

      Copy paste: “Whilst calmly forgetting that the use of the vehicle constitutes among the biggest creator of pollutants. Humbug”

      Like or Dislike: Thumb up 2 Thumb down 0
  • C.P. MOHAN on Dec 20, 2020 at 2:27 pm

    EV is future not combustion engine. ASEAN+ countries like Indonesia, Thailand, Singapore and china are already embracing it

    Like or Dislike: Thumb up 5 Thumb down 0
  • Ex VGM staff on Dec 20, 2020 at 7:10 pm

    Time for Proton to bring out the Saga REEV and Exora REEV into production.

    Even though proton campro engines do not to comply to euro 5 and 6 regulations due to higher carbon footprint, it will pass euro6+ easily since the car is powered by battery pack and motor while the engine will run at tickover to charge the battery.

    Proton ramge extended hybrids can easily qualify in this Thailand programme and even the entire European strict control.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Ksatria on Dec 20, 2020 at 10:28 pm

    Well done Thailand

    Like or Dislike: Thumb up 2 Thumb down 0
 

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