The Ministry of Finance is exploring the possibility of increasing excise taxes on imported electric vehicles (EVs) that feature low levels of local content, especially focusing on electric pickup trucks. This effort is part of a broader initiative to promote domestic investment in the local electric pickup truck industry, according to a ministry source who preferred to remain anonymous.
The proposed tax hikes could impact Chinese-made EVs that benefit from a zero import tariff under Thailand’s free trade agreement (FTA) with China. If these vehicles have little or no local content, they may face higher excise taxes. This move aims to address competitive disparities, as Chinese EVs currently enjoy zero import duties, while imports from other countries are subject to tariffs between 40% and 80%.
The Excise Department is working closely with the Board of Investment (BoI) to develop support measures for the domestic pickup truck industry. Importers meeting BoI criteria could qualify for these incentives.
Former Prime Minister Thaksin Shinawatra also advocated for imposing higher excise taxes on imported EVs with minimal local content during the “Unlocking Thailand’s Future” conference. He argued that free trade agreements with certain countries, which grant zero import tariffs on EVs, may undermine the growth of Thailand’s domestic automotive sector. Thaksin suggested that foreign EV manufacturers could source more local components, such as Thai-made car seats, to improve the local content.
Additionally, Thaksin emphasized that promoting electric vehicles could help reduce pollution, highlighting Thailand’s current fuel consumption—60 million liters of diesel, 25 million liters of gasoline, and 10 million liters of other fuels daily, equivalent to the output of a 40,000-megawatt power plant.
He also proposed turning Thailand into a hub for green electricity, suggesting that producing around 40,000 MW of solar-generated power, which would require approximately 1.4 million rai of land, is feasible given the country’s available land resources. Thaksin recommended establishing a dedicated division within the Electricity Generating Authority of Thailand (Egat), tentatively named “Green Egat,” to spearhead this initiative.
