To promote measures facilitating electric vehicles’ (EVs) use in Thailand and lessen fossil fuel consumption, the excise department is planning to restructure the vehicle excise tax.
However, this would depend on the development of these vehicles in the country. For your information, there’s a government committee that looks at the systematic process of the development, including the approach to make full use of the electric vehicles and the development timeline.
Previously, the department had adopted many excise tax measures while aiming at supporting the government incentives’ outcome and helping to lessen the usage of outdated technology as well as products that aren’t eco-friendly.
To cite an example, an excise tax measure was applied to encourage the usage of four-stroke motorcycle engines so as to lessen the usage of two-stroke engines that actually create more air pollution. Similarly, measures were taken to encourage unleaded petrol instead of regular petrol. These policies encourage consumers to use more government-supported products.
There are other factors that can also contribute to the widespread usage of EVs in the country. These are;
- Sales price;
- Depreciation cost of EVs.
Both of the above are higher for vehicles powered by the internal combustion engine. This one of the officials said that the Thai government can use funds from their Energy Conservation and Promotion Fund so as to subsidize the sales process. However, this would completely depend upon government policy.
Additionally, the investment made for the infrastructure to facilitate EVs usage is equally crucial, like a power grid system and the charging stations. The measures to promote electric vehicles like getting a designated parking space can be adopted.
The automakers want clarification on the tax promotion policy from the Thai government as it is to expire in 2025. It is important for them to know there will be continued support for eco-cars and under which category they would fall alongside any other policy that is devised to promote energy-saving cars.
In short, the Excise Department needs to confirm the tax structure for vehicles before 2025 to provide sufficient time to plan a business in a particular direction. Presently, the excise tax on EVs is stipulated at 8%. But then if someone is granted promotion from the BOI, then the excise tax stands at 2%.
