In gradual move towards EVs, excise tax on petrol vehicles to be hiked
The excise tax on internal combustion engine or petrol vehicles will be raised, with higher taxes based on carbon dioxide (CO2) emissions, following the Cabinet’s nod for restructuring vehicle excise tax.
The government wants the tax to be more in line with the policy to promote the use of electric vehicles or EVs.
The Finance Ministry estimates that if there is a large-scale switch to EV cars in 2022-25 to replace internal combustion engine cars, as targeted by the EV board, automobile excise tax revenue would go down by approximately 1.8 billion baht per year.
To bring the excise tax revenue on automobiles to be close to the amount collected in 2021, the excise tax rate on internal combustion engine vehicles must be gradually adjusted from 2026 onwards, official sources said.
The public has expressed its opposition to raising taxes on petrol cars with netizens complaining that the majority of people still use internal combustion engine cars. The change to EVs is expected to take many more years. Some people may be reluctant to make the switch due to inadequate charging stations for EVs, which makes them inconvenient as of now, netizens said.
