Cabinet approves tax hike on imported EVs to 35% from 2027

The mobile Cabinet has approved an increase in excise tax rates for imported electric vehicles to 35%, effective Jan 1, 2027, to protect local manufacturing and employment, Finance Minister Ekniti Nitithanprapas said today.

Under the approved tax restructuring, excise rates for imported battery electric vehicles (BEVs) will rise from 10% to 35%, while range-extended electric vehicles (REEVs) will increase from 15% to 35%.

Ekniti, who also serves as Deputy Prime Minister, said the tax hike aims to preserve Thailand's position as a regional auto production and export hub, safeguarding jobs and local supply chains while encouraging new investments.

The Cabinet also directed the Excise Department to negotiate tax incentive packages for potential investors, offering reduced rates for companies establishing or expanding manufacturing bases in the country.