Thailand considers excise tax hikes on imported EVs
Electric pickup trucks in particular are being looked at by the Excise Department, said a ministry source who requested anonymity. Any increases would be part of a package being developed to support domestic investment in the electric pickup truck industry,
According to the source, imported EVs from China that benefit from a zero import tariff may be subject to a higher excise tax if they contain zero local content or just a low level of local content.
Thailand has a free trade agreement (FTA) with China, allowing many Chinese imports — including EVs — to enjoy zero import duty. This has created competitive imbalances with automakers from other countries who face import tariffs ranging from 40% to 80%.
According to the source, the Excise Department is collaborating with the Board of Investment (BoI), which is working on measures to support the pickup truck industry. Importers who meet BoI conditions would be eligible for support.
Speaking at the 'Unlocking Thailand's Future' conference on Thursday night, former premier Thaksin Shinawatra proposed the government impose a high excise tax on imported EVs that use a low proportion of local content.
He said FTAs with some countries that enjoy zero import tariffs on EVs negatively affect the ecosystem of the domestic automotive industry. He did not name the countries.
Using car seats made in Thailand was one example of the kind of local content foreign EV makers could source, he said.
Thaksin also mentioned that promoting the use of EVs would help reduce pollution.
Currently, Thailand imports 60 million litres of diesel a day, 25 million litres of gasoline and another 10 million litres of other types of fuel, equivalent to the output capacity of a 40,000-megawatt power plant.
He also expressed support for Thailand to become a hub for green electricity. Producing 40,000MW of green electricity from solar energy for 24-hour power generation would require about 1.4 million rai of land.
He said Thailand has sufficient land to make this possible, and that the Electricity Generating Authority of Thailand (Egat) could undertake this initiative by establishing a separate division, or a 'Green Egat'.
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