Cabinet green-lights juicy tax benefits for electric vehicles
If you buy an electric vehicle between October 1, 2024, and September 30, 2025, you stand to gain up to 80 per cent in tax reduction.
The tax reduction was given the green light at a cabinet meeting on Tuesday. The cabinet also approved tax exemption for electric vehicles assembled or manufactured in a duty free zone.
To be eligible for tax exemption, electric vehicles must have less than 10 seats and should be manufactured/assembled in free zones announced by the Customs Department or the Industrial Estate Authority of Thailand. The exemption will run until the end of 2025.
The moves aim to accelerate the use of electric vehicles in Thailand, which will help reduce carbon dioxide emissions and air pollution caused by particulate matter 2.5 micrometres or less in diameter (PM2.5), government spokesman Thanakorn Wangboonkongchana said on Tuesday.
The government expects to see a jump in electric vehicle usage by 123,000 units by 2025, but it will lose tax revenue to the tune of 3.5 billion baht.
“The estimated loss of revenue could be higher, depending on domestic demand,” Thanakorn added.