Thailand to Cut Excise Tax on Domestic-Made Cars
Thailand is cutting excise taxes on domestically-made vehicles to support local automakers and create fairer competition against imported cars benefiting from preferential trade agreements.
Deputy Prime Minister and Finance Minister Ekniti Nitivattananon announced that the government is restructuring the excise tax on automobiles, targeting reduced taxes for automakers with manufacturing bases in Thailand and using local components. Manufacturers interested in investing in Thai factories have raised concerns due to inconsistent tariff structures, where vehicles from certain country groups like EFTA receive lower tax rates, limiting domestic industry development.
Citing requests from businesses operating in Thailand, the government has instructed the Revenue Department to urgently review the matter to ensure fairness to domestic investors and support sustainable growth of the automotive industry. The tax structure review will not be limited to electric vehicles but will also cover gasoline and hybrid vehicles with domestic manufacturing operations.
"We believe excise tax is a measure that can help create fairness among automakers—not just for EVs, but also for gasoline and hybrid vehicles with manufacturing plants in Thailand," Ekniti said.
