Thailand to Increase Import Tax on Electric Vehicles to 35% in 2027
The Thai government has approved a significant increase in import duties for BEV and REEV vehicles, set to take effect on January 1, 2027.
According to Prachachat Business, the Thai government has officially approved a policy to raise the import tax on Battery Electric Vehicles (BEV) and Range Extended Electric Vehicles (REEV) to 35%. This new rate is scheduled to take effect on January 1, 2027, replacing the current lower rates of 10% and 15%. Dr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, stated that this decision is driven by three primary objectives: to encourage the use of locally manufactured components, to strengthen Thailand's position as a regional electric vehicle hub, and to foster sustainable industrial growth. For residents and potential car buyers in Thailand, this policy shift may lead to changes in the pricing and availability of imported electric vehicle models in the coming years. The government plans to engage with international stakeholders regarding these industrial goals, with a scheduled roadshow for Japanese investors set for November 17. While the tax hike is confirmed for 2027, details regarding specific exemptions or transitional measures for existing investment agreements remain to be clarified by the relevant authorities.
