BANGKOK, Thailand – Thailand’s government is reviewing lower excise taxes for vehicles produced in the country. The new rules would cover electric cars, hybrids and combustion engine models.
Manufacturers must run factories in Thailand and use local parts to qualify. The plan aims to support companies that invest and create jobs in the country.
Tax cuts planned for three drive types
Finance Minister and Deputy Prime Minister Ekniti Nitithanprapas said the new excise tax structure will not be limited to electric vehicles. Hybrid models and combustion engine vehicles from domestic production will also be included.
The condition is that car manufacturers operate production facilities in Thailand and use parts from the country. The government wants to support companies that invest in Thailand and create jobs.
Tariff differences spark criticism
The trigger for carmakers’ demands, according to the government, is the current structure of import duties. It leads to unequal treatment between different groups of countries.
Vehicles from certain country groups, such as the EFTA, benefit from lower duty rates. According to the government, this makes it harder to develop the domestic auto industry.
Excise department ordered to review quickly
Ekniti ordered the Excise Department to review the question quickly. The government wants to create more fairness for investors in Thailand.
At the same time, the new regulation should support the growth of the auto industry in the country.
Government aims to strengthen local manufacturers
The planned tax measure targets manufacturers of various drive technologies. The key factor is production in the country and the use of local components.
As of now, the Excise Department is reviewing the new structure on the instruction of the finance minister.