The National Electric Vehicle Policy Committee will consider promotion measures for the production of electric vehicle (EV) batteries in Thailand, says Excise Department director-general Lavaron Sangsnit.
The move follows Thailand's recent launch of state subsidy and tax incentive measures to promote EV production and adoption, he said after the department and Toyota Motor Thailand signed an agreement on Friday involving the promotion of battery electric vehicles (BEVs) in Thailand.
Finance Minister Arkhom Termpittayapaisith presided over the ceremony.
Mr Lavaron, who also serves as the national committee's spokesman, said the current excise tax on batteries ranges from zero to 8%, based on the technologies used to produce the batteries. Batteries using high production technologies are subject to a lower levy.
A department source who requested anonymity said the EV committee is considering providing a subsidy to support the purchase of batteries, the same way it provides a subsidy to people to buy BEVs.
The source said the state subsidy of 600 baht per kilowatt-hour (kWh) of battery capacity will be given to battery makers, who must pass on the subsidy to battery buyers as a discount. For example, if a battery has 40kWh capacity, the battery maker receives a 24,000-baht subsidy.
Mr Arkhom said Toyota's participation in the EV promotion scheme will accelerate EV adoption in Thailand.
Last month the department signed an agreement with Great Wall Motor Manufacturing (Thailand) Co and MG Sales (Thailand) Co that included a commitment to lower their BEV prices, in line with the government's subsidy and tax incentive measures.
At least five BEV importers and manufacturers as well as electric motorcycle makers are expected to sign a similar agreement with the department this year.
The cabinet gave the nod to BEV promotion measures on Feb 15. As part of the measures, BEVs priced 2 million baht or lower, if imported without using any free trade privileges, face a lower import tax (maximum of 40%), down from 80%, during 2022-23. The excise tax is also lowered to 2% from 8% during 2022-25.
BEVs with a battery capacity of up to 30kWh are given a subsidy of 70,000 baht, while those with a higher battery capacity receive a 150,000-baht subsidy.
Imported BEVs priced more than 2 million baht to 7 million, if imported without using any free trade privileges, face a lower import tax (maximum of 60%), down from 80%, during 2022-23. The excise tax is lowered to 2% from 8% during 2022-25.