New tax law could provide spark to Thailand’s global EV hub dream

A new tax law introduced today could provide the spark to realize Thailand’s global electric vehicle hub dream.

The Excise Department in Bangkok revealed a law governing the reduction of the EV tax from 8% to 2% will be published tomorrow in the Royal Gazette and come into effect on Friday, after the Council of State finished vetting the law, and Finance Minister Arkhom Termpittayapaisith signing it into law.

Department spokesman Nattakorn Utensut Nattakorn says now the law is in effect, more EV manufacturers will want to sign deals with the government to jointly promote EV adoption in Thailand.

“I believe there will be at least 3 to 4 EV manufacturers from Japan and China, and 2 to 3 electric motorcycle makers from Thailand and China signing MoUs this year.”

Thailand recently introduced state subsidy and tax incentive measures to promote EV production and adoption in the country. Deco Green Energy Co, a Thai electric motorcycle manufacturer and distributor, recently signed an agreement with the Excise Department to promote battery electric vehicles under the government’s subsidy and tax incentive measures.

Toyota Motor Thailand, Great Wall Motor Manufacturing (Thailand) Co, and MG Sales (Thailand) Co signed similar agreements with the department, which is expected to result in wider adoption of EVs in the kingdom.

EV manufacturers taking orders from Thai buyers have already delivered around 500 cars to consumers, out of 10,000 orders. They are expected to deliver an additional 1,500 cars after the excise tax reduction law takes effect.

SOURCE Bangkok Post