To solve environmental problems, in the future, electric vehicles (EV – Electric Vehicle) will replace gasoline-powered cars. Every year in Europe and the United States, EV use is increasing. Meanwhile, Thailand also offers incentives to promote EV cars. What is still a problem is that the price of EVs is relatively high. Therefore, at the beginning of 2022, the cabinet meeting approved the start of measures to support the Thai electric car market by releasing incentives with preferential customs duties under the Free Trade Agreement (FTA) and general imports by “reducing import taxes on electric vehicles” and “subsidizing the purchase of EVs by battery size” throughout 2022-2023.
How Does the EV Car Tax Credit Cover?
It covers cars, pickup trucks, and motorcycles.
How Does the EV Car Tax Credit Work?
Duty reduction and customs duty exemption can be divided into two groups as follow:
EVs with A Retail Price of Less Than THB2 million
- The imported pre-assembled Completely Built Units (CBU) vehicle will receive the Free Trade Agreement (FTA) and general import preferential duty rates.
- If the FTA import duty is less than 40%, the duty will be waived.
- If the FTA import duty is higher than 40%, the duty will be reduced by 40%.
- For an importer who does not benefit from the FTA, the import duty will be reduced from 80% to 40%.
- The excise tax is reduced from 8% to 2%.
EVs with A Retail Price of THB2-7 million
- The imported pre-assembled Completely Built Units (CBU) vehicle will receive the Free Trade Agreement (FTA) and general import preferential duty rates.
- If the FTA import duty is less than 20%, the duty will be waived.
- If the FTA import duty is higher than 20%, the duty will be reduced by 20%.
- For an importer who does not benefit from the FTA, the import duty will be reduced from 60%.
- The excise tax is reduced from 8% to 2%.
The state subsidizes the purchase of EVs based on battery size.
- If the battery size is less than 30 kW/h., the vehicle is subjected to a subsidy of about THB70,000 baht/vehicle.
- If the battery size is more than 30 kW/h., the vehicle is subjected to a subsidy of THB150,000 baht/vehicle.
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