Tax to promote electric vehicles forecasted

Thailand is hopping on the electric vehicle bandwagon. An anonymous source within the Finance Ministry told the Bangkok Post that the Thai government is mulling over providing tax benefits aimed to encourage electric vehicles. This move is coming in the wake of recent promises by PM Prayut Chan-o-cha to increase Thailand’s focus on tackling climate change.

The source told the Bangkok Post that the Thai government would try to support domestic companies that produce traditional combustion engine-powered vehicles while also promoting the production of electric vehicles. This would require a restructuring of the entire vehicle excise tax system that is in place in Thailand, the source added. This tax is based on engine carbon dioxide emission rates.

But they went on to say that this restructuring would likely be very gradual, as to give domestic vehicle manufacturers time to adjust. According to the source, last week representatives from Toyota Motor Thailand met with Finance Minister Arkhom Termpittayapaisith and his team to discuss the plan that would overhaul the current vehicle excise tax system. Toyota is one of the largest and most important foreign car manufacturers in the country, and is capable of producing 760,000 vehicles domestically per year.

The source also said that the Ministry is working on a measure to subsidize the importing of finished electric vehicles next year. This legislation would most notably benefit China, considering that there is currently a 0% duty on the import of Chinese electric vehicles.

The Thai government has announced the goal of having 30% of all cars in the country be electric by 2030.

SOURCE: Bangkok Post