Transport Ministry Eyes 200 Billion Baht Support for Transport Sector EV Transition with Zero Tax
Thailand's Transport Ministry plans to allocate 200 billion baht to help transport operators switch to electric vehicles with zero annual tax, targeting seven operator groups including taxis, buses, and songthaews struggling with rising fue
The Transport Ministry is planning to allocate 200 billion baht to help the transport sector transition to electric vehicles with reduced annual vehicle tax to 0%. The ministry will also enforce regulations phasing out public vans in favor of minibuses to improve passenger safety.
On May 12 at the Transport Ministry, Deputy Transport Minister Siripong Angsakulkiattikorn announced that the ministry will consult with the Finance Ministry this week to finalize support measures for transport operators transitioning from fossil fuel vehicles to electric vehicles (EVs).
The initiative targets seven major transport operator groups affected by the energy crisis and rising operational costs, with plans to present recommendations to the Cabinet for expedited approval.
Siripong stated that the emergency decree authorizing a 400 billion baht loan must directly benefit the public and small business operators, particularly by reducing costs in the transport sector amid current economic volatility.
The support measures will not follow a traditional vehicle trade-in model but will focus on making it easier for operators to lease or purchase new EVs through various measures such as down payment assistance, interest subsidies on a cost-sharing basis, and tax incentives including zero annual vehicle tax to encourage concrete transition to clean energy.
Siripong outlined that support will cover seven transport operator groups: taxis, public vans, buses, songthaews, private rental vehicles (up to 7 passengers), tuk-tuks, motorcycle taxis, and cargo trucks. Preliminary estimates suggest a budget of 10,000-20,000 million baht will be needed, prioritizing vehicles nearing the end of their legal service life. Approximately 100,000 vehicles nationwide qualify, including about 17,000 songthaews over 10 years old.
The measures will be voluntary, allowing operators to apply for support even if their vehicles haven't expired, if they wish to switch to EVs to reduce fuel costs.
Regarding extending the service life of public vans, the Transport Ministry has decided against further extensions due to previous repeated relaxations. The ministry believes the time has come to enforce the legal requirement for public vans to transition to minibuses to improve passenger safety and welfare in the long term.
