Thailand unveils fresh tax breaks for EV makers

Bangkok

THAILAND approved a slew of new incentives covering electric cars, buses, trucks, motorcycles and ships to promote local production of electric vehicles and its supply chain.

The new package, approved by the nation's Board of Investment chaired by Prime Minister Prayuth Chan-Ocha, includes a three-year tax holiday for manufacturers of plug-in hybrid vehicles and an eight-year corporate income tax waiver for battery electric vehicle makers.

The incentives, which replace a set of benefits that expired in 2018, "will accelerate the development of EV production and related supply chain in Thailand, and allow the entire sector to move into higher gear," Duangjai Asawachintachit, the board's secretary general, said in a statement.

Thailand, already Southeast Asia's car production hub, is seeking to position itself as a centre for battery-powered vehicles as countries compete to lure investment by global automakers. The nation's combination of policies and incentives are the most advanced in the region, according to BNEF.

Some details of the package are: Four-wheel vehicle manufacturers must invest a minimum of five billion baht (S$218 million) to be eligible for the tax breaks. Those investing less than five billion baht will get a three-year tax holiday. Companies investing to produce motorcycles, three-wheelers, buses and trucks will be entitled to a three-year corporate income tax exemption Manufacturers of electric-powered ships with less than 500 gross tonnage will get an eight-year corporate income tax waiver. BLOOMBERG

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