EV excise tax cut begins June 9
published : 8 Jun 2022 at 08:17
newspaper section: Business
writer: Wichit Chantanusornsiri
The law governing the reduction of the electric vehicle (EV) excise tax from 8% to 2% will take effect on June 9, according to the Excise Department.
Department spokesman Nattakorn Utensut said the Council of State finished vetting the law and Finance Minister Arkhom Termpittayapaisith already signed it into law.
The law will be published in the Royal Gazette on June 8 and come into force on June 9, said Mr Nattakorn.
He believes after the law is in effect, more electric cars and electric motorcycle manufacturers will line up to sign memoranda of understanding (MoUs) with the government to jointly promote EV adoption in Thailand.
“I believe there will be at least three to four EV manufacturers from Japan and China and two to three electric motorcycle makers from Thailand and China signing MoUs this year,” said Mr Nattakorn.
Thailand introduced state subsidy and tax incentive measures to promote EV production and adoption in the country.
Deco Green Energy Co, a Thai electric motorcycle manufacturer and distributor, recently signed an agreement with the Excise Department to promote battery electric vehicles (BEVs) under the government’s subsidy and tax incentive measures.
Previously three other companies — Toyota Motor Thailand, Great Wall Motor Manufacturing (Thailand) Co and MG Sales (Thailand) Co — signed similar BEV agreements with the department, which is expected to result in wider adoption of EVs in Thailand.
Mr Nattakorn said the global auto chip shortage has not improved and some EV manufacturers have stopped taking new car orders from Thai consumers on a temporary basis. If the shortage persists for years, it could affect Thailand’s promotion of EV usage, he said.
EV manufacturers taking orders from Thai buyers have already delivered around 500 cars to consumers, out of 10,000 total orders, said Mr Nattakorn. They are expected to deliver an additional 1,500 cars after the excise tax reduction law takes effect, he said.
- Electric vehicles
- great wall