Thailand to Raise Imported EV Tax to 30 Percent

The Government of Thailand plans to increase the excise tax on fully imported electric vehicles to at least 30 percent starting January 1, 2027. This policy shift aims to transform the country into a global production hub by penalizing completely built-up vehicles that lack local components.

The Thailand Ministry of Finance will implement a three-tier tax system that rewards automakers based on their level of domestic component integration, prioritizing high-technology parts. To further enforce local sourcing, the government is tightening battery rules; by 2026, imported battery cells may account for no more than 10 percent of a vehicle's factory price. Under the existing EV 3.5 scheme, manufacturers must produce three local vehicles for every imported unit by 2027.

Industry representatives have expressed concern over the timing of the announcement. Suwat Supakarndechakul of the Federation of Thai Industries warned that advance notice may trigger a consumer rush to buy imported EVs before the 2027 deadline, which could distort the market and weaken demand the following year.