More tax incentives for electric vehicles

The cabinet on Tuesday approved two more tax incentives to promote use of electric vehicles and help make Thailand a major EV production base, Prime Minister Prayut Chan-o-cha said.

Speaking after the cabinet meeting, he said the annual road tax for private vehicles powered completely by electricity was cut by 80% for one year.

The tax cut would apply to EVs registered between Oct 1 this year and Sept 30, 2025.

The government expected that during the period at least 128,000 EVs would be on the roads, Gen Prayut said.

The government would also waive the tariff on the local production of battery-driven passenger cars, buses carrying up to 10 people each and pickup trucks until May 31, 2025.

The tax exemption applies to the vehicles locally produced in tax-free areas and free trade areas in industrial estates. 

"Both measures are part of the government's initiatives to make Thailand one of the world’s major production bases for electric vehicles," Gen Prayut said.

The initiatives would improve air quality and stimulate the economy through EV production, he said.

Earlier the excise tax on EVs was cut to lower their prices and make them more affordable.