Thailand's Automotive Tax Structure to Align with Global EV Trends
Deputy Finance Minister Highlights the Need for a Balanced Tax System Amidst the EV Shift
Thailand is adapting its automotive excise tax structure to align with global trends in the electric vehicle (EV) industry, according to Deputy Finance Minister Paopoom Rojanasakul.
The updated tax framework, effective from 2026, aims to position Thailand as a major hub for EV production in Southeast Asia, while balancing between battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Mr. Paopoom emphasized that while the global shift is moving away from internal combustion engines (ICEs), the transition must be managed to avoid economic disruption.
The current excise tax system, based on carbon emissions, will see significant changes: ICE vehicles emitting 100g or less of CO2 per km will be taxed at rates starting from 13% in 2026, increasing to 15% by 2030.
High-emission vehicles will see higher taxes, with rates increasing from 34% in 2026 to 38% in 2030.
For hybrid electric vehicles (HEVs), the tax rates will increase incrementally, and BEVs will remain at a lower tax rate of 2%.
Newly introduced tax rates for PHEVs starting in 2026 depend on electric range and fuel capacity, with rates varying from 5% to 30%.
These adjustments are part of Thailand's strategic plan to reduce environmental impacts and support the global transition to greener technologies.
The updated tax framework, effective from 2026, aims to position Thailand as a major hub for EV production in Southeast Asia, while balancing between battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Mr. Paopoom emphasized that while the global shift is moving away from internal combustion engines (ICEs), the transition must be managed to avoid economic disruption.
The current excise tax system, based on carbon emissions, will see significant changes: ICE vehicles emitting 100g or less of CO2 per km will be taxed at rates starting from 13% in 2026, increasing to 15% by 2030.
High-emission vehicles will see higher taxes, with rates increasing from 34% in 2026 to 38% in 2030.
For hybrid electric vehicles (HEVs), the tax rates will increase incrementally, and BEVs will remain at a lower tax rate of 2%.
Newly introduced tax rates for PHEVs starting in 2026 depend on electric range and fuel capacity, with rates varying from 5% to 30%.
These adjustments are part of Thailand's strategic plan to reduce environmental impacts and support the global transition to greener technologies.
