Thailand is revising its automotive excise tax structure to align with global trends towards electric vehicles (EVs), aiming to bolster its position as a regional EV production hub. Deputy Finance Minister Paopoom Rojanasakul announced that the new auto tax system, which reflects the growing shift towards battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), is set to come into effect from 2026.
Paopoom emphasized the need for a balanced tax approach that supports both BEVs and PHEVs, given uncertainties in the global auto market. “A tax structure that leans exclusively towards EVs may not be the answer. We need to maintain a balance across the entire tax system. If the global trend favours PHEVs, Thailand would still be well-positioned,” he explained. Paopoom also highlighted the importance of a cautious transition for internal combustion engine (ICE) vehicles, as sudden tax changes could disrupt Thailand’s extensive ICE production lines and affect employment.
In 2022, the National EV Committee’s proposal to amend Thailand’s automotive tax regime received Cabinet approval. The revised structure aims to reduce emissions and position Thailand as a leading EV and electric motorcycle production hub in Southeast Asia.
Currently, ICE vehicle taxes are based on carbon emissions. For example, vehicles emitting up to 100 grams of CO₂ per kilometer face a 20–25% tax, while those emitting over 200 grams face a 30–35% tax. Starting in 2026, the new structure will incentivize low-emission vehicles. ICE vehicles emitting up to 100 grams of CO₂ per kilometer will see tax rates decrease to 13%, with gradual increases to 15% by 2030. Emission levels above 200 grams will incur higher rates, reaching 38% by 2030.
Hybrid electric vehicles (HEVs) will also see phased tax changes. HEVs emitting 100 grams of CO₂ per kilometer will be taxed at 6% in 2026, rising to 10% by 2030. BEVs, currently taxed at 2%, will maintain this rate under the new structure.
A tailored tax plan for PHEVs will be implemented in 2026. PHEVs with an electric range of 80 kilometers or more and limited fuel capacity will be taxed at 5%, while those with lower range and higher fuel capacity will face a 10% rate. PHEVs with engines exceeding 3,000 cc will have a 30% tax, while fuel cell EVs will benefit from a 1% rate.
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