According to a report by Bangkok Post, Thailand’s cabinet today approved an increase in the excise tax on fully-imported (CBU) electric vehicles (EVs) to 35% from 10%. The country’s finance minister, Ekniti Nitithanprapas, said this was part of a new tax structure aimed at encouraging investment and local production.
The new tax rate is scheduled to come into effect from January 1, 2027 and is said to serve two objectives. The first is protecting investors who have already poured money into manufacturing plants and supply chains in Thailand. Additionally, it encourages automakers that are reliant on CBU imports to accelerate negotiations with the government to establish local production facilities.
