Excise Tax relief for hybrid electric vehicles

On 4 December 2024, Thailand’s National Electric Vehicle Policy Committee (EV Board) approved a revised incentive package for the temporary lowering of the excise tax rate for locally produced hybrid electric vehicles (HEV) that was first approved in July 2024. The revised package now includes an additional incentive category for mild hybrid electric vehicles (MHEV) featuring electrical systems with a voltage lower than 60 volts.

For HEV, the excise tax rate will be reduced to 6% for vehicles with CO₂ emissions not exceeding 100 g/km and 9% for vehicles with CO₂ emissions over 100 g/km and not exceeding 120 g/m.

For MHEV, the excise tax rate will be 10% for vehicles with CO₂ emissions not exceeding 100 g/km and 12% for vehicles with CO₂ emissions over 100 g/km and not exceeding 120 g/m.

The reduced rate for MHEV will be effective during the period 2026-2032 and will apply to vehicles with no more than 10 seats, on the condition that the vehicles meet low CO2 emission requirements, feature at least 4 of the 6 Advanced Driver-Assistance Systems, or ADAS, and use designated key parts produced in Thailand. The package also requires manufacturers and their affiliates make new investments in Thailand of not less than Baht 1 billion (USD 29.2 million) by 2026 and not less than Baht 5 billion in total from 2024 to 2028. The incentive package will be submitted to the Cabinet for consideration and final approval.