Tax reductions on hybrid and electric vehicles for 8 years to boost domestic investment. The Excise Department assures that this will not affect market prices. Private sector responds positively, believing it will lower hybrid car prices.

     On June 20, 2017, the Royal Gazette of the Prime Minister's Office published a Ministry of Finance announcement regarding the reduction of excise tax rates, document number 138, which states that taxes on four types of vehicles will be reduced: 1. Passenger vehicles (PPVs) with an engine capacity not exceeding 3,250 cubic centimeters (cc) that are hybrid will have their excise tax reduced to 23%. 2. Passenger vehicles with a double cab and an engine capacity not exceeding 3,250 cc that are hybrid will have their excise tax reduced to 10%.

     Meanwhile, hybrid passenger cars with an engine capacity not exceeding 3,000 cc will have their excise tax halved from the reduced rate specified in the Ministry of Finance announcement on tax reductions and exemptions (Document No. 27) dated December 30, 1991, and electric vehicles (EVs) will have their excise tax reduced to 2%.

     Mr. Natthakorn Uthensut, Director of the Tax Planning Bureau at the Excise Department, revealed that this excise tax reduction will take effect from June 21, 2017, until December 31, 2028, aiming to promote investment in energy-efficient vehicles that utilize advanced technology and are environmentally friendly in Thailand, including both hybrid and electric vehicles. He confirmed that there will be no impact on the prices of electric and hybrid vehicles currently available in the market, as the tax will only affect vehicles resulting from new investments in the future. It is believed that this legal adjustment will stimulate future investments.

     Mr. Supharat Sirisuwanangoon, Vice President of the Federation of Thai Industries (FTI), expressed support for the new excise tax structure for hybrid vehicles announced by the Ministry of Finance, as it is expected to reduce hybrid car prices by 10-20% from current prices. This will bring hybrid vehicle prices closer to those of conventional vehicles in the same category and pave the way for the production and use of electric vehicles in the future.

Source:  www.thaipost.net