FTI Welcomes 35% Excise Tax on Imported EVs to Protect Domestic Industry
The Federation of Thai Industries has welcomed a new 35% excise tax on fully imported battery electric and range-extended electric vehicles, saying it will protect domestic manufacturers and create a level playing field. Industry leaders thanked the government for the move, which takes effect in 2027, and pledged to work closely with authorities on implementation details. The automotive sector, which employs over 800,000 people across 2,500 companies, stands to benefit from increased local production.
The Federation of Thai Industries is confident the new excise tax on fully imported vehicles will create fairness, affirm domestic production, and bring broad benefits across the supply chain. FTI Vice Chairman Suwat Supakanchadecha and Thai Automotive Industry Association President Yupin Boonchiran said: "The automotive industry group and the association would like to thank the government for the resolution to restructure the excise tax for fully imported CBU BEV and REEV vehicles at 35% to protect the domestic automotive industry. We believe this tax adjustment will help create fairness for entrepreneurs who invest and produce in Thailand, and send a clear signal that Thailand values long-term investment and domestic value creation. However, we will closely monitor and negotiate with the government on various details before enforcement begins in 2027." The automotive and parts industry is one of the country's main industries, with more than 2,500 operators throughout the supply chain and more than 800,000 jobs, ranging from vehicle manufacturers, parts and raw material makers, supporting industries, SMEs, to related service businesses. Promoting domestic production therefore helps spread benefits across the wider economic system.
