The Thailand Board of Investment (BOI) has approved the roll out of a comprehensive set of incentives covering all major aspects of the Electric Vehicles (EV) supply chain, with a focus on Battery Electric Vehicles (BEVs), local production of critical parts, and the inclusion of commercial vehicles of all sizes as well as ships.
The board also approved 35.7 billion baht (US$1.1 billion) worth of large investment projects in several sectors.
“In line with the Government policy to promote electric vehicles across the board, and to answer the radical changes underway in the global car industry, the BOI today approved a package that will accelerate the development of EV production and related supply chain in Thailand, and allow the entire sector to move into higher gear,” said Ms Duangjai Asawachintachit, Secretary General of the BOI, after a board meeting chaired by Prime Minister Gen Prayut Chan-ocha.
New Package For EV
The new promotion package, which replaces the first EV package which expired in 2018, covers a comprehensive range of electrical vehicles, namely passenger cars, buses, trucks, motorcycles, tricycles, and ships.
Incentive schemes for these different types of electric vehicles can be summarised as follows:
- Four wheelers: Qualified projects with a total investment package worth at least 5 billion baht will be granted a 3-year tax holidays for PHEVs, but as for BEVs, an 8-year corporate income tax exemption period will be offered and will be extendable in case of R&D investment/expenditures.
- Motorcycles, three-wheelers, buses and trucks: Qualified projects will be granted 3-year corporate income tax exemption, extendable if meeting additional requirements.
- Electric-powered ship production projects, for vessels with less than 500 gross tonnage, will be eligible for eight years of corporate income tax exemption.
The BOI also approved to add four more types of EV parts in the list of critical parts, namely high voltage harness, reduction gear, battery cooling system and regenerative braking system. These four categories will all receive eight years corporate tax exemptions.
To promote local EV battery production, the BOI also approved additional incentives for the production of both battery modules and battery cells for the local market by granting a 90 percent reduction of import duties for two years on raw or essential materials not available locally.
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