Thailand’s Finance Minister Proposes ~30% Excise Tax On Imported EVs

Thai Finance Minister Ekniti Nitithanprapas stated in an interview that Thailand may impose an excise tax of approximately 30% on fully imported electric vehicles (EVs). He said the Thai government is finalising the exact rate with the automotive industry and expects to make a decision as early as this month end. 

Meanwhile, this is very similar to what MITI is doing in Malaysia and it is to protect against dumping by foreign EV producers. 

When asked whether the rate would fall within the “31% to 32%” range, he indicated it would be roughly around 30%. Ekniti Nitithanprapas explained that due to constraints under free trade agreements, Thailand cannot directly raise tariffs, making excise tax a key policy tool to support domestic manufacturers. 

Overview Of Thailands Electric Vehicle Market

• Thailand plans to increase excise taxes on fully imported EVs above the previous 10% rate.
• Lower rates will apply to vehicles imported for testing, local assembly or production.
• EVs manufactured in Thailand using domestic components will receive the lowest tax rate.
• Electric and hybrid vehicles accounted for 55% of new cars in the first seven months of 2026.
• EV ecosystem investment reached USD4.59 billion across 189 projects by August 2026.
• Thailand has produced about 170,000 EVs domestically and has potential annual capacity of 380,000 vehicles.

Meanwhile, last week, Thailand’s Electric Vehicle Policy Committee provisionally approved a three-tier excise tax structure which is the highest rate applies to fully imported EVs; the lowest rate applies to vehicles produced locally in Thailand and an intermediate rate applies to locally assembled models that rely partially on imported components. 

Ekniti Nitithanprapas revealed that some automakers currently importing vehicles from China and Europe have already approached the Thai government, expressing plans to invest in Thailand to qualify for lower excise tax rates. 

He added that nine EV manufacturers have already commenced production in Thailand, with some exporting locally made vehicles overseas. The Thai government has designated EVs and other future mobility industries as one of seven priority sectors aimed at driving the next phase of economic growth.