Thailand raises consumption tax rate on imported electric vehicles to 35%

China News Service, Bangkok, November 3 (Wang Qi, Li Yingmin) Thai Deputy Prime Minister and Finance Minister Enidi said on the 3rd that the cabinet meeting held on the same day approved the adjustment of the consumption tax rate for imported pure electric vehicles (BEV) and extended-range electric vehicles (REEV), which will be uniformly raised to 35%. The new tax rate will be implemented on January 1, 2027.

According to the adjustment plan, the BEV consumption tax rate will be raised from the current 10% to 35%, and the REEV rate will be raised from 15% to 35%. Among them, BEV refers to a car that uses only battery power and is driven by an electric motor; REEV refers to a car that uses both fuel and electricity and is driven only by an electric motor.

Enidi said that this adjustment is aimed at supporting Thailand's development of automobile production and export bases, maintaining the operations and employment of automobile industry supply chain enterprises, and attracting new investment. Facing the market competition brought by imported cars, Thailand needs to adjust the consumption tax structure to enhance the competitiveness of the local automobile industry and promote the development of the auto parts supply chain.

Enidi also said that this tax adjustment mainly follows three principles, namely, driving investment through imports, promoting Thailand to become a regional and global environmentally friendly vehicle production and export center, and increasing the use of high value-added local parts and components. The Thai government hopes to use this to strengthen the automobile industry production chain, increase jobs, and improve the skills of the local workforce. (over)