Thailand to Increase Excise Tax on Imported Electric Vehicles

According to Khaosod Online, the Thai Excise Department announced that the Cabinet approved an increase in the excise tax rate for fully imported (CBU) battery electric vehicles (BEV) and range-extended electric vehicles (REEV). The rate will rise from the current 10% to 35%, effective January 1, 2027. Director-General of the Excise Department, Pornchai Thiravej, stated that this adjustment is expected to increase retail prices for these imported vehicles by approximately 49% due to the inclusive tax calculation method. The government has provided this lead time to allow automotive manufacturers to adjust their production plans, investments, and inventory management. The policy aims to encourage domestic manufacturing, as local producers using Thai-made batteries currently benefit from a significantly lower tax rate of 2%. For residents and potential buyers, this change signals a major shift in the automotive market, likely making imported electric models considerably more expensive. While the tax hike is confirmed, the long-term impact on the availability of specific vehicle models and the potential for manufacturers to shift production to Thailand remains to be seen. Consumers should monitor future announcements from automotive brands regarding pricing strategies and local assembly plans as the implementation date approaches.