Mr. Ekniti Nitithanprapas, Thailand’s Deputy Prime Minister and Minister of Finance, disclosed that the Ministry of Finance is considering the introduction of an approximately 30% excise tax on fully imported electric vehicles (CBU EVs). This is part of a broader initiative to restructure the tax system in alignment with the long-term development of the country’s electric vehicle industry.
The proposed tax aims to serve as a policy tool to encourage international automotive manufacturers to establish production bases and assemble electric vehicles within Thailand, rather than solely relying on finished vehicle imports. The intent is to strengthen the country’s competitiveness and fortify the domestic supply chain.
Presently, the government is working closely with the automotive sector to carefully examine the details and finalize an appropriate and balanced tax rate. The objective is to avoid any adverse impact on overall market confidence.
The timeline for implementing this policy anticipates a formal announcement and finalized tax structure by September 2026, providing businesses with adequate time to adapt and plan their investments.
Previously, Mr. Pornchai Thiraveja, Director General of the Excise Department, stated that the National Electric Vehicle Policy Committee (EV Board), in its first meeting of 2026, approved in principle a three-tiered excise tax structure for electric vehicles. This new structure is intended to replace direct budgetary subsidies as the main policy tool, fostering investment, reducing imports, and promoting Thailand as a manufacturing and export hub—especially for right-hand drive vehicles—while increasing local content value.
The three-tier tax structure is as follows: The first tier, with the lowest tax rate, applies to automakers with significant domestic production and use of local components. The second tier, with a moderate rate, applies to importers entering the market for preliminary testing or initial investment, with plans to manufacture locally. The third tier, with the highest rate, applies to importers with no intention of investing or manufacturing within Thailand.
This measure is intended to curb excessive imports, which could undermine the domestic manufacturing base. The tax rate for vehicles in the highest tier is expected to exceed the current rate of around 10%, starting with those imported solely for domestic sale. The Excise Department will finalize the tax rates and related regulations before submitting them to the Ministry of Finance and subsequently to the Cabinet for approval.
