Thailand Cuts Electric Vehicle Taxes

Thailand Cuts Electric Vehicle Taxes – Thailand provides support for electric vehicles so that automotive manufacturers can invest more. Thailand’s cabinet approves tax incentives to promote the switch to electric vehicles. Quoted by Reuters, Thai Finance Minister Arkhom Termpittayapaisith said the incentives were given to attract foreign investment to help boost the economy.

Thailand Cuts Electric Vehicle Taxes

The vehicle tax relief carried out by Thailand includes reducing import duties this year and the next by 40 percent for fully imported electric vehicles at a price of 2 million baht. In addition, electric cars with higher prices ranging from 2 million to 7 million baht are given a 20% import duty relief.

Thailand Cuts Electric Vehicle Taxes

The Thai government will cut the excise tax on imported electric vehicles to 2% from the normal 8%. This incentive measure is expected to add 7,000 units of electric vehicles in the first year. This was conveyed by Thai Finance Minister Arkhom Termpittayapaisith in a press conference.

According to him, eligible car manufacturers will also receive a subsidy of between 70,000-150,000 baht for each electric vehicle. Electric motorcycles are also subsidized by 18,000 baht per unit.

Also approved was a cut in the income tax rate from 35% to 17% for skilled foreign professionals in the targeted industry or economic zone.

The electric vehicle scheme for 2022-2025 was approved last week as part of a zero-emissions vehicle policy and a goal to ensure 30% of Thailand’s total car production is electric vehicles by 2030.

Thailand is a major regional automaker and typically produces around 2 million conventional vehicles per year. In terms of vehicle production, Thailand is superior to Indonesia because most of the cars made in the White Elephant Country are exported to various countries.

Meanwhile, the Indonesian government has actually provided support for electric vehicles. Electric cars are given 0% PPnBM. At the regional level, transfer fees (BBN) and motor vehicle taxes (PKB) for electric cars and motorcycles are also lighter. In fact, there are areas that liberate biofuels for electric vehicles, such as DKI Jakarta.

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