Thailand to increase tax on EV imports, official says

Bangkok - Thailand's electric vehicle board has decided to raise excise tax on EV imports to encourage investment in homegrown auto manufacturing, according to a finance official. The highest tax rate will apply to fully imported vehicles, exceeding the current 10 percent excise tax, said Pornchai Thiraveja. Lower tax rates will be in place for vehicles imported for testing and those destined for local assembly or production, according to Pornchai.

Cars assembled in Thailand with local components will face the lowest tax rate, he added. A grace period will provide automakers with time to adjust to the new tax structure, though its length has not been set.

The tax increase is expected to be finalized by the end of the month, announced Lavaron Sangsnit, Permanent Secretary of the Finance Ministry. Electric and hybrid vehicles made up 55 percent of new cars sold in the first seven months of 2026, marking the first time combined registrations of EVs, hybrids, and plug-in hybrids surpassed those of conventional internal combustion engine vehicles, reported the Board of Investment.

To harness consumer demand, Thailand's automotive sector must transform it into long-term capital formation, local technology development, and quality jobs, stated Narit Therdsteerasukdi, head of the BOI.

Since August 2026, the BOI has approved a total of US$4.59 billion in investments for electric vehicle projects, involving 189 initiatives. Thailand serves as a crucial regional hub for car manufacturing and exports, including companies like BYD and Toyota Motor.