In more detail
On 28 December 2023, the Ministerial Regulation Prescribing the Excise Tariff Rate (No. 37), B.E. 2566 (2023) was published in the Government Gazette to extend the temporary reduction of the excise tax rate of passenger cars or transport cars with 1,300 cc for gasoline engines and 1,400 cc for diesel engines ("eco-cars") under 1) and 2) (E) of the excise tariff codes 06.01 and 06.02. This follows the schedule annexed to the Ministerial Regulation Prescribing the Excise Tariff Rate, B.E. 2560 (2017), as amended by the Ministerial Regulation Prescribing the Excise Tariff Rate (No. 23), B.E. 2565 (2022).
Under this ministerial regulation, the excise tax rate for eco-cars will be temporarily reduced from 25% to 14% for another two years, starting from 1 January 2024 and ending on 31 December 2025. This extension continues the reduction previously granted from 9 June 2022 to 31 December 2023, due to the impact of the pandemic and semiconductor shortages on the Thai automotive industry. These challenges have prompted significant changes in infrastructure and production, including the promotion of domestic consumption of electric vehicles. Thus, this temporary extension of the excise tax rate aims to promote the Thai automotive industry during the transition period of becoming a regional electric vehicle production hub, aligning with the Thai government's electric vehicle roadmap.
For additional information, please get in touch with our Tax team.
