BANGKOK, Nov 3 — Thailand will raise the excise tax rates on imported battery electric vehicles (BEVs) and range-extended electric vehicles (REEVs) to 35 per cent from January 1, 2027, as part of efforts to protect domestic manufacturers and strengthen the country's automotive industry.
Deputy Prime Minister cum Finance Minister Ekniti Nitithanprapas said the Cabinet, at its mobile meeting in Udon Thani today, approved the increase from the current 10 per cent for BEVs and 15 per cent for REEVs.
The move aimed to maintain Thailand's position as a regional vehicle production and export hub, while protecting local companies in the automotive supply chain and safeguarding employment.
"Although foreign and local companies have invested in and manufactured vehicles in Thailand, they have not received adequate support amid rapid global developments. Imports have also created an uneven playing field.
"Therefore, we need to protect our domestic manufacturing base while encouraging new investment," he told the media after the meeting.
Ekniti added that the government has also instructed the Excise Department to negotiate preferential tax rates for new investors establishing or expanding their manufacturing operations in Thailand.
The Cabinet had authorised it to conduct negotiations, with several potential investors already expressing interest in expanding their production bases in the country to benefit from the incentives.
The tax increase covers BEVs, which run solely on battery power, and REEVs, which combine fuel and rechargeable electric power but are driven exclusively by electric motors.
