Thailand to Increase Import Taxes on Electric Vehicles Starting 2027

The Thai government, led by Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas, has announced a major shift in the country's automotive tax policy. Starting January 1, 2027, excise taxes on imported electric vehicles (EVs) that are not manufactured domestically will rise from 10% to 35%. Similarly, taxes on vehicles powered by electric motors will increase from 15% to 35%.

According to Khaosod Online, this policy change aims to transform Thailand into a regional hub for EV production and export rather than merely a destination for imported vehicles. The government intends to protect the local automotive supply chain and support domestic employment by ensuring fair competition for manufacturers who have already established factories within the country.

For residents and potential investors, this move signals a shift toward prioritizing local production. The Excise Department has been authorized to negotiate special tax incentives for new investors who commit to setting up manufacturing bases in Thailand. While this policy is set to take effect in 2027, the specific details regarding potential tax exemptions or special agreements for new entrants remain subject to ongoing negotiations between the government and interested automotive companies. Travelers and residents should monitor how these changes might influence the future pricing and availability of various EV models in the Thai market.