Thailand’s Finance Minister Proposes ~30% Excise Tax on Fully Imported EVs

On September 15, Thai Finance Minister Ekniti Nitithanprapas stated in an interview that Thailand may impose an excise tax of approximately 30% on fully imported electric vehicles (EVs). He said the Thai government is finalizing the exact rate with the automotive industry and expects to make a decision as early as this month. When asked whether the rate would fall within the "31% to 32%" range, he indicated it would be roughly around 30%. Ekniti Nitithanprapas explained that due to constraints under free trade agreements, Thailand cannot directly raise tariffs, making excise tax a key policy tool to support domestic manufacturers. Last week, Thailand’s Electric Vehicle Policy Committee provisionally approved a three-tier excise tax structure: the highest rate applies to fully imported EVs; the lowest rate applies to vehicles produced locally in Thailand; and an intermediate rate applies to locally assembled models that rely partially on imported components. Ekniti Nitithanprapas revealed that some automakers currently importing vehicles from China and Europe have already approached the Thai government, expressing plans to invest in Thailand to qualify for lower excise tax rates. He added that nine EV manufacturers have already commenced production in Thailand, with some exporting locally made vehicles overseas. The Thai government has designated EVs and other future mobility industries as one of seven priority sectors aimed at driving the next phase of economic growth.