Thailand could impose an excise tax of around 30% on fully imported electric vehicles, Finance Minister Ekniti Nitithanprapas said on Sept 15, potentially tripling the current rate as the government pushes carmakers towards local production.
Ekniti disclosed the figure in an interview with Bloomberg Television. Asked whether the levy could reach 31% to 32%, he said it “should be around” 30%.
The rate remains under discussion, with the government consulting the automotive industry and aiming to finalise the structure by the end of September.
The proposal follows a Sept 10 decision by Thailand’s National Electric Vehicle Policy Committee to restructure EV excise taxes according to manufacturers’ investment, domestic production and use of locally made components.
Under the planned system, fully imported EVs sold by companies without Thai production facilities would face the highest rate.
Carmakers producing vehicles locally but importing selected models would receive different treatment, while EVs manufactured in Thailand with higher local content would qualify for lower rates.
The existing excise rate for fully imported EVs is about 10%.
Thailand’s move follows a similar shift in Malaysia, where tighter conditions on fully imported EVs are increasing pressure on foreign carmakers to move towards local assembly. Malaysia has also maintained incentives for locally assembled EVs, making completely knocked down (CKD) production increasingly important for brands seeking to compete in the mass market.
Thailand’s proposed tax changes form part of a broader effort to deepen local EV manufacturing as the domestic market expands.
Battery-electric vehicle registrations reached 126,950 units in the first seven months of 2026, up 88% year-on-year. Approved EV-related investment stood at 151.37 billion baht (RM18.5 billion) across 189 projects as of Aug 31.
