In brief
The Thai government has approved raising the excise tax on imported electric vehicles to 35% from 2027, replacing the previous 10% rate for battery‑electric vehicles and 15% for range‑extended models. The move, decided in a cabinet meeting in Udon Thani, seeks to strengthen Thailand’s production chain, create jobs, and position the country as a regional hub for green vehicle manufacturing. Analysts view the policy as a strategy to make locally assembled EVs more competitive by raising the cost of fully imported cars.
Thailand’s cabinet approved a hike of the excise tax on fully imported battery‑electric and range‑extended electric vehicles from 10% and 15% to a flat 35% effective January 1, 2027.
The decision was announced at a cabinet meeting held in Udon Thani, with Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas stating the policy aims to strengthen the production chain, create jobs and upgrade skills while positioning Thailand as a regional hub for green vehicle manufacturing.
The tax increase will apply to both battery‑electric vehicles (BEVs) and range‑extended electric vehicles (REEVs), following guidance from the National Electric Vehicle Policy Committee and the Finance Ministry.
By steepening the cost of imported EVs, the measure is designed to make Vietnamese‑built vehicles more competitive and encourage investment in local part production.
Industry observers see the move as part of a broader strategy to attract foreign investment and enhance supply‑chain resilience.
The new rate will replace the current 10% BEV and 15% REEV rates, creating a uniform 35% levy for both categories of fully imported electric vehicles.