Thailand Plans to Increase Excise Tax on Imported EVs
The Ministry of Finance is preparing to propose a significant hike in excise taxes for fully imported electric vehicles, aiming to encourage local manufacturing.
According to a report by Khaosod Online, Thailand’s Ministry of Finance is set to propose an increase in the excise tax for fully imported electric vehicles (EVs) to the Cabinet within the next two weeks. The current tax rate of approximately 10% is expected to rise to at least 30% for vehicles imported as complete units without locally produced components.
The primary objective of this policy shift is to protect established automotive manufacturers that have already invested in local production facilities and supply chains within Thailand. Furthermore, the government intends to incentivize companies currently relying on imports to accelerate their plans for establishing manufacturing plants within the country. If approved, the new tax structure is projected to take effect starting January 1, 2027.
For residents and potential buyers, this change could lead to a notable increase in the retail price of imported EVs purchased from the beginning of 2027. For instance, a vehicle priced at 1 million baht would see its tax burden rise from 100,000 baht to over 300,000 baht. While the proposal is moving toward the Cabinet for consideration, the final implementation details and the exact tax percentage remain subject to official confirmation and government approval.
