BoI green-lights EV privileges
The Board of Investment (BoI) yesterday approved promotional privileges for electric vehicles (EVs), including tax holidays of 5-8 years.
Secretary-general Hiranya Sujinai said the privileges will focus on production of three types of electric cars: hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
The promotion will include passenger cars, pickup trucks and buses, with different rates of privileges based on production technology.
HEVs will only be entitled to a tariff exemption for imported machinery. Investment applications must be submitted on December 31, 2017 and proposed on a package basis, covering assembly and key parts production plans.
Applications for the production of PHEVs are also required to be submitted on a package basis covering assembly and key parts production plans by December 31, 2018. The PHEV investment will be eligible for a corporate income tax exemption of 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 should not exceed six years.
Applications for the production of BEVs are also required on a package basis. Documents need to be submitted on December 31, 2018. The BEV investment will be entitled to 5-8 years 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 should not exceed 10 years.
Battery electric buses will also need to come up with proposals on both assembly and parts production plans by December 31, 2018. They 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.
Mrs Hiranya said the board also agreed yesterday to add 10 more important EV parts that will enjoy corporate income tax exemption for eight years.
They include batteries, traction motors, battery management services, DC/DC converters, inverters, portable electric vehicle chargers, electrical circuit breakers and EV smart charging systems.
Investment in those items will garner additional privileges and a 50% cut on corporate income tax for another five years if the manufacturers establish their factories in the Eastern Economic Corridor and submit their applications by December 29, 2017.
Industry Minister Uttama Savanayana said the government expects the electric cars to be manufactured over the next three years.
He said supplementary measures were also expected to be forwarded to the cabinet for vetting next Tuesday.
The supplementary measures include a requirement for state agencies to buy electric cars and establish charging stations.
Meanwhile, Nathporn Chatusripitak, an adviser to Commerce Minister Apiradi Tantraporn, yesterday said the BoI had approved promotional privilege packages for four medical services: Thai herbal services, special medical centres, hospital construction in 20 provinces and logistic services.