The Thai cabinet has endorsed revisions in taxation aimed at promoting the purchase of plug-in hybrid electric vehicles (PHEVs), with these measures set to take effect starting January 1st of the upcoming year.
The regulation amends the tax provisions for PHEVs, introducing the following changes:
setting up an independent tax rate for PHEVs, different from that of hybrid electric vehicles;
basing the tax calculation criteria solely on electric-powered driving range per charge; and
eliminating fuel tank size as a factor in determining PHEV tax rates.
The third factor has hindered Thailand's potential to become a manufacturing hub as requirements for fuel tanks are incompatible with international standards, Deputy Finance Minister Paopoom Rojanasakul said after Tuesday's cabinet meeting.
The rule also adds unnecessary restrictions for consumers and discourages the adoption of PHEVs, he said.
PHEV passenger cars or vehicles with seating capacity of 10 or less, and an electric-powered driving range of 80 kilometres or more per charge, are taxed at 5%.
For plug-in hybrid electric vehicles (PHEVs) with a range of under 80 kilometers per charge, the tax rate is set at 10%.
The updated guidelines are consistent with international benchmarks and aim to support Thailand’s position as a production hub for standardized PHEVs that cater to both local and overseas market demands, according to Mr Paopoom.
It is anticipated that this regulation will boost investments in Thailand’s automobile industry, improve competitive edge amid the shift towards advanced vehicle technologies, and cater to the growing demand for plug-in hybrid electric vehicles in both city settings and between towns, as mentioned by him.
Reduced excise taxes will apply to plug-in hybrid vehicles (PHEVs) that have a greater electric range.
"This is an excellent step since consumers are interested in purchasing electric vehicles that offer extensive ranges," stated Surapong Paisitpatanapong, who serves as both the vice-chairman of the Federation of Thai Industries and the spokesperson for its Automotive Industry Club.
He mentioned that orders for plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and battery electric vehicles (BEVs) surged at the recent Bangkok International Motor Show. The sales momentum kept increasing even after the event concluded on April 6th.
This is a positive development during a time when domestic car sales have been slow because individuals are finding it hard to obtain auto financing.
"This indicates that these buyers are fairly economically stable," stated Mr Surapong.
Provided by Syndigate Media Inc. ( Syndigate.info ).