THAILAND may consider lowering the import duty on electric vehicles (EVs) as the country tries to promote the use of such cars.
Quoting a ministry source, the Bangkok Post reports that if Thailand wants to promote EV usage, it will have to lower the import duty during the initial phase of EV promotion.
At present, only EVs produced in China appear to have the upper hand as they are subject to a zero per cent import duty in Thailand.
The source said that a comprehensive EV promotion, which is expected to be enforced early next year, would be implemented step-by-step to give all car manufacturers time to adjust their businesses.
Currently, Thailand's EV import tax rates vary with only those imported from China enjoying the zero tax rate under a bilateral agreement between the two countries.
In comparison, some EVs imported from Japan are subject to a 20 per cent tax rate under the Japan-Thailand Economic Partnership Agreement.
However, the source said most EVs imported from Japan are not entitled to the 20 per cent rate and instead face an 80 per cent rate as their Japanese content exceeds the level required for the lower rate.
EVs imported from South Korea are levied a 40 per cent import tax, while those from Europe face an 80 per cent import tax.
Last week, Finance Minister Arkhom Termpittayapaisith said a planned government fund was expected to subsidise the prices of EVs, to keep them closer to the cost of petrol engine cars.
The planned fund is one of several measures to promote EV usage.
He said that in addition to a planned excise tax incentive, the fund would be another tool to keep EV market prices affordable for the mass market.
The ministry source also said the fund would hand out cash to people purchasing EVs.
Meanwhile, the Thaiger reports that Thailand car makers are ramping up the production of electric vehicles after the Thailand Board of Investment approved new electric vehicle projects.
It said there are 24 projects to produce electric vehicles of all types, including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV).
Thailand's Board of Investment said it includes Mitsubishi Motors Co Ltd's 5.48 billion baht investment to increase the company's production of EVs in 2023.
The company's car production line at Laem Chabang Industrial Estate in Thailand would see 39,000 vehicles produced in 2023.
The Sammitr Group is also set to produce 30,000 BEVs with a 5.5 billion baht investment.
Both companies are also aiming to export to other Asean countries.
BMW and Nissan have also got the greenlight to produce EV cars in Thailand.
Earlier in March this year, Thailand declared a goal of having one million EV's on its roads by 2025, with a figure of 15 million to be expected in 10 years.
The market is expected to include not just private vehicles, but also delivery vans, buses, and trucks.
As EV adoption has been growing at a steady rate in Thailand, 2019 saw more than 30,000 new HEVs/PHEVs and more than 1,200 BEVs and motorcycles registered.
Around 750 charging outlets have also been setup in some 500 locations around the country.