Thailand: Two-year extension of excise tax rate reduction for eco-cars

In brief

The Ministerial Regulation Prescribing the Excise Tariff Rate (No. 37), B.E. 2566 (2023) was published in the Government Gazette to extend the reduced excise tax rate for eco-cars from 1 January 2024 to 31 December 2025.


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.

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.