EV Board approves tax cut for “HEV vehicles” from 2018-2022 under 4 conditions

"EV Board" approves measures to support the transition period of the automotive industry, greenlighting the reduction of excise tax rates for "HEV vehicles" from 71-75 under 4 conditions, expecting no less than 5 companies interested, with investment funds of no less than 50 billion baht over 4 years. Prime Minister Settha Thavisin assigned Deputy Prime Minister and Finance Minister Pichai Chunhavachira to chair the 2nd National Electric Vehicle Committee meeting in 2024. After the meeting, Mr. Narit Therdsathirasak, Secretary-General of the Board of Investment (BOI), revealed that the EV board meeting approved measures to support the transition to the electric vehicle industry by reducing the excise tax rate for hybrid passenger cars and passenger cars with a seating capacity of no more than 10 people (HEV) to support the automotive industry to transition to environmentally friendly vehicles and align with the direction of modern technology to meet the needs of improving the quality of life of people in the country, entering a low-carbon society, and supporting continuous investment in Thailand to drive Thailand towards becoming a global hub for the production and export of all types of electric vehicles. The HEV production support measure will reduce the excise tax rate to a fixed level during 2028-2032, from the original rate that would increase by 2 percent every 2 years. It requires HEV vehicle manufacturing companies that wish to receive the privilege to comply with 4 conditions before receiving the privilege, as follows: 1. Carbon dioxide (CO2) emissions must not exceed 120 g/km . 2. There must be additional actual investment by the car manufacturer and/or affiliated companies in Thailand from 2024 - 2027, not less than 3 billion baht. 3. Important parts that are produced or assembled domestically must be used. The HEV car model applying for the right must use batteries produced domestically from 2026 and must use other important parts from 2028 onwards. 4. There must be an intelligent safety syst em (Advanced Driver Assistance System: ADAS) installed in the HEV car model applying for the right, at least 4 out of 6 systems. After this, the EV board meeting assigned the BOI, together with the Ministry of Finance, to submit this measure to the Cabinet for consideration and approval. It is expected that no less than 5 car manufacturers will be interested in participating, generating continuous investment over the next 4 years of no less than 50 billion baht.-317.-Thai News Agency Source: Thai News Agency