Mr. Ekniti Nitithanprapas, Thailand’s Deputy Prime Minister and Minister of Finance, disclosed that the Cabinet, during its off-site meeting in Udon Thani, had approved an increase in excise tax rates for imported electric vehicles that do not use domestically manufactured components.
The tax rate for battery electric vehicles (BEVs) manufactured overseas and imported into Thailand will rise from 10% to 35%. Meanwhile, the rate for range-extended electric vehicles (REEVs), which combine fuel and electric power but are driven exclusively by electric motors, will increase from 15% to 35%. Both changes will take effect on January 1, 2027.
Mr. Ekniti said the measure aims to strengthen Thailand’s position as a manufacturing and export hub while protecting the domestic automotive supply chain, which supports substantial employment among both Thai workers and foreign investors operating in the country.
He noted that rapid developments in the global automotive industry and the growing influx of imported vehicles had created an uneven competitive environment for manufacturers with production bases in Thailand. The government therefore intends to safeguard existing manufacturing operations while encouraging additional investment.
The Cabinet has also instructed the Excise Department to negotiate a separate tax structure offering preferential rates to companies undertaking new investments in Thailand. According to Mr. Ekniti, several prospective investors have already approached the government to discuss establishing or expanding production facilities in the country to benefit from available investment incentives.
