Govt mulls tax cuts, subsidies to spur electric car adoption

Govt mulls tax cuts, subsidies to spur electric car adoption

Electric cars are showcased at the Motor Expo 2021 in Nonthaburi province. (Photo: Pattarapong Chatpattarasill)
Electric cars are showcased at the Motor Expo 2021 in Nonthaburi province. (Photo: Pattarapong Chatpattarasill)

The government is weighing an array of incentives including lower taxes and cash subsidies to develop the market for electric vehicles, betting the perks may spur automakers to invest more and make Thailand a manufacturing hub for cleaner cars.

Prime Minister Prayut Chan-o-cha’s cabinet may soon consider subsidies between 70,000 baht (US$2,145) and 150,000 baht depending on the type and model of vehicle, and lower excise tax and import duties on completely built and partially built EVs, according to a draft proposal viewed by Bloomberg from the National Electric Vehicle Policy Committee headed by Deputy Prime Minister Supattanapong Punmeechaow.  

The wider incentives for imports will last until 2025 when local production is expected to gather momentum. The tax breaks for EV manufacturers are on the condition that companies produce the same number of vehicles or more by 2025 that they import in the preceding years, according to the proposal. 

Supant Monkolsuthree, chairman of the Federation of Thai Industries and a member of the EV policy committee, confirmed the contents of the draft plan. Sompop Pattanariyankool, a spokesman for the Energy Ministry, declined to comment on the plan before the cabinet approval.

The EV policy committee is a panel of government and industry officials responsible for drawing up a policy roadmap to help Thailand achieve 100% zero emission vehicle production by 2035.

Thailand is bidding to retain its status as an automobile manufacturing hub in Southeast Asia as carmakers globally pivot to electric vehicles. The nation expects to draw as much as 400 billion baht in investment EV manufacturing over the coming years. 

Toyota Motor Corp, Foxconn Technology Group, China’s Great Wall Motor Co and PTT Pcl are among companies planning to build factories in Thailand.

The subsidy for imported EVs will be paid to local firms, which will in turn pass on the benefits to buyers. If the companies are found in breach of the rules later, they will lose all incentives, forfeit their bank guarantees and must pay back the subsidy with accrued interest, according to the proposal.

"The package should be helpful in creating local demand for EVs and also encourage producers to start producing EVs or they will lose the opportunity to benefit from this market," Mr Supant said.


Do you like the content of this article?
COMMENT (5)

Poland burst Saudi bubble in Qatar

AL-RAYYAN, Qatar: Robert Lewandowski scored his first ever World Cup goal as Poland brought Saudi Arabia back down to earth with a bump on Saturday with an 2-0 Group C victory that rejuvenated their tournament campaign.

26 Nov 2022

Taiwan president's party humbled in local polls

TAIPEI: Taiwan President Tsai Ing-wen’s ruling party suffered a major defeat in Saturday’s local elections, which are seen as a prelude to the island’s 2024 presidential and legislative elections.

26 Nov 2022

Four held after 1.2m speed pills seized

Four members of a suspected drug network in the South have been arrested in Nakhon Si Thammarat with 1.2 million speed pills seized, while another 300,000 speed pills were found abandoned by a smuggler in Fang district of Chiang Mai, authorities said on Saturday.

26 Nov 2022