Thai Industry Group Backs Tax Restructuring to Boost EV Investment

Pimpjai Lee Issaranukul, chair of the Federation of Thai Industries, attended the first meeting of 2025 of the National Electric Vehicle Policy Committee, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithaiyakarn.

Data presented at the meeting showed Thailand's automotive industry is transforming rapidly. In the first seven months of 2025, battery electric vehicle registrations reached 126,950 units, up 88%, while extended-range electric vehicles accounted for 55% of all vehicle registrations. The Board of Investment has promoted 189 investment projects in the electric vehicle industry and related sectors worth 151.4 billion baht, including plans to install 23,135 charging stations and additional manufacturer investments of more than 50 billion baht.

The meeting considered principles for restructuring automotive excise taxes to drive investment and domestic production, promote the use of Thai-made components and raw materials, ensure fair competition, and position Thailand as a global automotive manufacturing and export hub. The committee approved these principles and instructed the Revenue Department to prepare detailed proposals for cabinet submission.

Pimpjai said the federation supports the approach, noting that the automotive industry and component manufacturers across the supply chain contribute more than 10% of Thailand's gross domestic product, involve over 2,500 companies, and employ more than 800,000 people. She stressed that policy measures must create tangible benefits for component manufacturers, supporting industries, and SMEs.

"The new tax structure should serve as a tool to incentivize investment and genuine domestic production, taking into account the economic value businesses create for Thailand through the use of domestic components, technology transfer, labor skill development, and integration of SMEs into the modern automotive supply chain," she said.

The Federation of Thai Industries is prepared to support the tax restructuring initiative and act as a bridge between the government, automakers, component suppliers, and related associations to gather industry feedback and recommendations for effective implementation.