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Monday, April 22, 2024

Thailand Promotes Electric Vehicles with Tax Incentives

The Electric Vehicle Board in Thailand has recently announced a strategic initiative aimed at bolstering the adoption of commercial electric vehicles (EVs) in the country. Under this initiative, spearheaded by Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI), the purchase of electric trucks and buses will become tax deductible, thereby incentivizing businesses to transition towards greener transportation options.

This move is motivated by a dual purpose: to curb carbon emissions and propel Thailand towards its ambitious goal of achieving zero carbon emissions, all while fostering the domestic production of EVs. The tax deduction scheme, set to remain in effect until the culmination of the following year, offers companies the opportunity to claim up to twice the purchase price against their taxes for locally-assembled vehicles and 1.5 times the price for imported ones.

Narit highlights that this initiative serves as an extension of existing incentives offered to purchasers of electric cars, motorcycles, and pickup trucks. The goal is to stimulate business operators to replace their internal combustion engine-powered vehicles with up to 10,000 electric trucks and buses by the specified deadline.

Moreover, the BoI has also greenlit measures to promote the production of battery cells for EVs and energy storage systems, aiming to attract battery cell manufacturers to establish production bases in Thailand.

Thailand has witnessed a substantial uptick in the adoption of EVs, with registrations exceeding 76,000 units last year alone, marking a 6.5-fold increase from the previous year. The BoI’s commitment to fostering the EV ecosystem is evident through its granting of promotional privileges to various EV projects, totaling investments of 77 billion baht in the past year.

The latest development in Thailand’s endeavor to promote EVs involves the introduction of tax reductions for users of electric trucks and buses, as approved by the National Electric Vehicle Policy Committee. These measures, effective until the end of 2025, aim to significantly boost the adoption of EV trucks and buses, mitigate pollution, and aid companies in their transition towards achieving net-zero emissions targets.

In addition to tax incentives, the government has approved cash grants for manufacturers of battery cells, drawing from the country’s Competitiveness Enhancement Fund. This measure seeks to bolster the production of battery cells, crucial components of the EV supply chain, ensuring the sustainability and resilience of Thailand’s EV ecosystem.

With robust governmental support in place, Thailand solidifies its position as a leader in automotive production in Southeast Asia and ranks among the top ten globally for auto production and exports. The country’s proactive stance towards supporting EVs, evident since the initiation of programs in 2022, has not only spurred demand but also attracted substantial investment, affirming its commitment to sustainable transportation solutions.

Gautham Suthakar
Gautham Suthakar
23, born and raised amidst the allure of Penang Island, Malaysia, I'm am an adventurous journalist now set to dive to the dynamic landscape and into the bustling streets of Bangkok, Thailand. With a fervent passion for storytelling and a thirst to offer fresh perspectives, join me as I unravel the rich tapestry of narratives in this vibrant city

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