Thailand’s government will be scraping the tax imposed on full electric vehicles (EV) from 1 January 2020 to 31 December 2022. The move aims to encourage full EV manufacturing and reduction of carbon emissions.
However, the tax waiver will only be offered to projects that were awarded promotional privileges from the Board of Investment (BoI). Currently, tax for BoI approved investment projects for manufacturing full EVs is two percent, while non-awarded BoI incentives are subjected to eight percent tax. The tax waiver also symbolically shows the government’s support for building full EVs.
Under Thailand’s S-curve policy, EVs have been identified as a targeted industry for driving economic growth. Finance Minister Apisak Tantivorawong said the government hopes this would speed up manufacturing of full EVs.
The government will also be cutting tax levied on vehicles depending on their carbon emissions. For example, pickup passenger vehicles that have CO2 emissions less than 0.005 PM will be taxed at three percent instead of the current four percent. Mr Apisak said that this would reduce emissions and promote a better environment. Furthermore, tax cuts will encourage manufacturers to increase diesel engine development to reduce emissions.
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