Thailand to reduce excise tax on electric vehicle batteries

03/02/2023 15:33

A national committee on electronic vehicle (EV) policy of Thailand, also known as the EV board, on February 2 agreed in principle on a proposal to lower the excise tax on EV batteries from the current 8% to just 1% while offering a 24 billion THB (730 million USD) subsidy to the EV battery-producing industry.

Thailand to reduce excise tax on electric vehicle batteries ảnh 1

Illustrative image (Photo: https://thaiembdc.org/)

Bangkok (VNA) – A national committee on electronic vehicle (EV) policy of Thailand, also known as the EV board, on February 2 agreed in principle on a proposal to lower the excise tax on EV batteries from the current 8% to just 1% while offering a 24 billion THB (730 million USD) subsidy to the EV battery-producing industry.

The subsidy will be on a first-come first-served basis, Thai Minister of Energy Supattanapong Punmeechaow said, adding that the subsidy should help reduce the prices of EV batteries and EVs overall, which will boost the country's EV-making industry.

The amount of the subsidy on offer will depend on the size of the battery produced, Supattanapong said.

A producer of an EV battery with less than 8-gigawatt hours (GWh) capacity will receive a subsidy of between 400 THB and 600 THB per kilowatt hour (kWh), while a factory making an EV battery of more than 8 GWh will receive between 600 THB and 800 THB per kWh, he noted.

The Thai government is accelerating the development of renewable energy, green economy and the EV industry under its 30@30 policy in order to promote Thailand as EV production base in the ASEAN region. The 30@30 policy stipulates that Thailand must boost manufacturing capacity of zero-emission vehicles, or EVs, by 30% by 2030./.

VNA