Tax on electric vehicles cut to lower prices
The Cabinet on Tuesday approved new rates of excise tax for 27 types of vehicles – raising rates for conventional cars and lowering them for electric vehicles (EVs).
The new rates for six types of EV will become effective as soon as they are published in the Royal Gazette while the other 21 will take effect between 2026 and 2035.
The six EVs will be subject to the following excise tax on their purchase price:
- Plug-in Hybrid (PHEV) pickup truck: 10 per cent until December 31, 2025
- EVs with up to 10 seats: 2 per cent until December 31, 2025 and 8-10 per cent thereafter
- Eco-cars with up to 10 seats: 14 per cent until December 31, 2023 and 10-12 per cent thereafter until 2025 depending on engine capacity, emissions and safety standards
- PHEV 4-door pickups: 5 per cent
- EV pickup trucks: Zero excise tax until December 31, 2025, and 2 per cent thereafter until December 31, 2035
- Hydrogen Fuel-Cell pickup trucks: Zero excise tax
Meanwhile, tax on internal combustion engine (ICE) cars of up to 3,000cc will rise gradually from 25-40 per cent from 2026 to 2029. Excise tax on more powerful ICE vehicles will be 50 per cent from 2026.
The Cabinet also gave the green light to cut import duty on completely built EVs costing up to Bt2 million by 40 per cent, and by 20 per cent for EV imports costing Bt2-7 million.
The moves are aimed at promoting Thailand as a hub of EV manufacturing and use in Asean, said the government.