Honda tantalised by EV promotional privileges
Japanese carmaker Honda Automobile Thailand is interested in the government's promotional privileges for electric vehicles (EVs), saying the packages are alluring, as they are offered to various types of EV-related products and technologies.
The government's EV promotional packages are open not only to hybrid electric vehicles (HEVs), but also plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
"We earlier proposed to the government that it should offer promotional privileges on HEVs and PHEVs before expanding into BEVs," said chief operating officer Pitak Pruittisarikorn. "And the government's incentives coincide with our proposals."
The Board of Investment (BoI) in March approved promotional privileges for EVs, including tax holidays of 5-8 years. The privileges focus on production of HEVs, PHEVs and BEVs.
The promotions include passenger cars, pickup trucks and buses, with different rates of privileges based on production technology.
HEVs are entitled to a tariff exemption for imported machinery, while PHEV investment is eligible for a corporate income tax exemption for three years and import tariff exemptions on machinery.
PHEV investors who manufacture more than one key EV part will be entitled to an additional year of corporate income tax exemption per piece, but the combined tax exemptions cannot exceed six years.
BEV investment is entitled to 5-8 years of corporate tax exemption. BEV investors who manufacture more than one key EV part will be entitled to another year of corporate income tax exemption per piece, but the combined tax exemption cannot exceed 10 years.
Battery electric buses will be entitled to tariff exemptions for imported machinery and a three-year corporate tax exemption. They are also eligible for an additional year of corporate income tax exemption per piece, with the combined tax exemption not to exceed six years.
The BoI added 10 more important EV parts that will enjoy corporate income tax exemption for eight years. They are batteries, traction motors, battery management services, EV smart charging systems, DC/DC converters, inverters, portable electric vehicle chargers and electrical circuit breakers.