Finance, Energy ministries to accelerate talks with automakers on new tax structure
The Finance and Energy ministries will next week discuss with car manufacturers the new automotive tax structure that will focus on electric vehicle (EV) promotions, Finance Minister Arkhom Termpittayapaisith said on Tuesday.
“The new tax structure will aim to attract more investment in EV manufacturing, which will result in increasing EV use in Thailand and the reduction of carbon dioxide emissions,” he said.
“However, the new tax structure will yield less income for the government and could affect existing automotive manufacturers, so the discussions would focus on creating mutual understanding on the necessity of EV promotion,” Arkhom said.
“The Finance Ministry estimates that the reduced revenue from automotive tax due to the new structure will be compensated by increasing revenue from corporate tax collected from new companies and factories that would be established to support expanding EV manufacturing in Thailand,” he said. “These companies will also help generate extra employment.”
Arkhom said he previously had discussions with EV manufacturers and importers, who agreed to participate in the EV subsidy campaign and increase investment in Thailand.
Under the campaign, manufacturers which build an electric vehicle in Thailand for every vehicle imported will receive a reduced import tariff, among other benefits.
“With the help of the new tax structure, Thailand aims to manufacture electric vehicles at 30 per cent of total automotive production in the country by 2030, or approximately 725,000 EVs per year, and become a leading EV exporter in the region,” Arkhom added.