BANGKOK (Bangkok Post) – The Thai Finance Ministry is set to present new support measures for plug-in hybrid electric vehicles (PHEVs) to the cabinet by April 2025. These measures, which are expected to take effect on January 1, 2026, aim to encourage the adoption of PHEVs in the country while facilitating the transition towards full electric vehicle (EV) production.
Deputy Finance Minister Paopoom Rojanasakul revealed that the proposed changes will include a new tax structure that separates PHEVs from fully electric vehicles (EVs). The tax rate for PHEVs will be determined by the vehicle’s electric range, rather than carbon emissions, with vehicles capable of traveling longer distances on electric power being taxed at a lower rate. Conversely, PHEVs with shorter ranges will face higher tax rates.
Another key change in the proposal is the removal of the existing fuel tank capacity restriction, which currently limits PHEVs to a maximum tank size of 45 liters. This move is expected to provide more flexibility for manufacturers and could help boost the market for PHEVs.
Further details regarding the specific tax rates for PHEVs will be disclosed once the cabinet approves the measures. According to the current structure, PHEVs with a range of over 80 kilometers per charge are taxed at 5%, while those with a range of under 80 kilometers face a 10% tax rate.
Mr. Paopoom emphasized that supporting PHEVs is essential to sustaining Thailand’s automotive manufacturing industry, which has traditionally focused on internal combustion engine-powered vehicles. The government views PHEVs as a necessary step toward the eventual widespread adoption of battery electric vehicles in the future.
In addition to the PHEV support measures, Mr. Paopoom outlined revisions to the excise tax structure for batteries. The new system will implement tiered tax rates based on battery type, life cycle, and energy capacity. Batteries with a longer life cycle and lower weight will be taxed at a lower rate, while disposable batteries and those with lower energy capacity but higher weight will incur higher taxes.
Starting next year, EV importers who benefit from government support measures will be required to manufacture EVs domestically to compensate for the imported vehicles. This requirement is part of the conditions to receive state incentives. It is estimated that around 100,000 EVs will be produced domestically in the coming year to meet these offset obligations.
