Thailand plans to rewrite the way it taxes cars, as excise rates are expected to fall for vehicles built in the country and rise for fully imported models from carmakers with no factory here.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced the plan and told senior officials to work out the details.
“This would kill several birds with one stone by supporting domestic production,” he said.
He warned that leaving the current gaps in place could push manufacturers to move to neighbouring countries. The ministry wants the details finished by September 2026 and the new rates in force before the end of the year.
It can move that fast because the change goes through a ministerial regulation under the Excise Tax Act. That route does not need a vote in Parliament.
The lower rates will cover petrol and diesel cars, plug-in hybrids and battery electric vehicles.
To be eligible for the lower rates, automakers will have to have put money in Thai factories, and source locally made raw materials or parts, along with building vehicles in Thailand for export.
No rates have been published yet, and the ministry has not said how much revenue it expects to gain or lose.
This comes as Indonesia has been trying to persuade Toyota to move production there, after landing a large investment from Hyundai.
Thailand has been the region’s car factory for decades, and losing an assembly hub of that size would take supplier jobs with it.
Finance Ministry permanent secretary Lavaron Sangsnit and excise department director-general Pornchai Theeravet have been given the job of drafting the new structure.
Related news
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- Toyota Thailand executive urges stronger EV policy amid Indonesia bid
- Thailand pitches new deals to slash US tariffs
Source: The Nation
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