Thailand studying new structure for the entire vehicle excise tax system to give EVs a leg up over ICE cars

Thailand studying new structure for the entire vehicle excise tax system to give EVs a leg up over ICE cars

To boost the sales of electric vehicles and make full EVs more attractive, Thailand’s excise department is looking at a full restructuring of the vehicle excise tax system, in favour of EVs versus internal combustion engine-powered vehicles.

But it all depends on the country’s overall direction when it comes to EVs, and there’s a government committee overseeing the process of EV development in Thailand, including timelines and measures to boost adoption. This was shared by excise department director-general Lavaron Sangsnit, reported by the Bangkok Post.

The D-G pointed to previous excise tax measures that supported government incentives, while helping to phase out outdated technology and products that were not eco-friendly. Different excise tax rates were meted out to encourage the use of four-stroke motorcycles (two-stroke bikes are more polluting) and unleaded petrol. In those cases, excise tax rates nudged consumers to use products the government wanted to push.

Thailand studying new structure for the entire vehicle excise tax system to give EVs a leg up over ICE cars

Lavaron added that besides tax policy, there are other measures that can be taken to boost EV adoption in Thailand. For instance, the government could use funds from the Energy Conservation and Promotion Fund to subsidise the price of EVs. Investment in infrastructure such as charging stations is also crucial, besides things like designated parking lots for EVs.

Thailand will have to finalise its tax and incentives policy for eco-cars soon, as the current policy is due to expire in 2025 and carmakers want clarity so that they can plan ahead.

At present, EVs attract 8% excise tax, but for carmakers that have been granted investment privileges from the Board of Investment (BoI), a 2% tax rate applies. In addition, from 2020 to the end of 2022, a 0% rate is applied under a special BoI investment promotion.

The current Thai excise tax structure of vehicles is based on carbon dioxide (CO2) emissions, and there are four vehicle categories – passenger cars with seats for no more than 10 people; pick-up trucks that are passenger vehicles, double cabs and space cabs; eco-cars and cars that use E85 and B10 biofuel; and EVs. More on Thailand’s EV push here.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • “excise tax rates nudged consumers to use products the government wanted to push”

    Meanwhile in Malaysia, excise tax rates nudges consumers to buy Proton & Perodua and to fill their cronies pockets.

    Like or Dislike: Thumb up 10 Thumb down 5
  • Kupumari on Jan 14, 2021 at 6:33 pm

    …..meanwhile in Malaysia, motorists are happy putting around with their polluting ICE engine. Heavy vehicles emitting more black smoke without much care.

    EV are still out of reach among average Malaysia, while the govt aint anywhere near providing the required infrastructure.

    Like or Dislike: Thumb up 7 Thumb down 3
    • Sgt Scoop on Jan 15, 2021 at 11:13 am

      why so salty? …..meanwhile in Malaysia, EV plan is on track if not better then tomyamland. read up NAP 2020, luckily we got the visionary Mai madani on our side. Msia’s elon musk….

      Like or Dislike: Thumb up 10 Thumb down 8
  • Bieight on Jan 14, 2021 at 6:49 pm

    Meanwhile in Malaysia we have flying cars and high tax for ev

    Like or Dislike: Thumb up 8 Thumb down 0
  • hazri on Jan 14, 2021 at 7:24 pm

    Poor ppl staying in flats & old cars, pity them.

    Like or Dislike: Thumb up 9 Thumb down 0
  • Moo Hit Tin on Jan 14, 2021 at 7:47 pm

    Pro environmental climate destruction rulers will always tax electric vehicles based on kilowatts power output therefore more internal combustion engine vehicle could releases more toxic fumes gases into environment and damaged your respiratory system

    Like or Dislike: Thumb up 3 Thumb down 1
  • Brian on Jan 14, 2021 at 9:13 pm

    If Thailand are truly earnest to promote EV usage just do like European countries do, give tax free to manufacturers, subsidised rebates on buying EV cars, zero restrictions and tolls into CBD, preferred parking at eV charging stations, and guaranteed resale valuation. But can they do that?

    Like or Dislike: Thumb up 7 Thumb down 3
  • dream125 on Jan 14, 2021 at 9:18 pm

    “Investment in infrastructure such as charging stations is also crucial, besides things like designated parking lots for EVs.”

    First of all they would need more power plants. In the north-east they are importing electricity from Laos already.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Chocolate Brown on Jan 15, 2021 at 11:49 am

    Malaysia’s chicken or egg dilemma: EV car first or charging infra first?

    Tor prefer to tunggu, tunggu and more tunggu…..for things to happen

    Like or Dislike: Thumb up 3 Thumb down 0
    • Celup King on Jan 15, 2021 at 2:04 pm

      The egg must come first for the chicken to hatch, so sufficient charging infra must happen before mass adoption of EV becomes viable.

      Like or Dislike: Thumb up 3 Thumb down 0
 

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