Thailand to raise EV import excise tax to 35% starting 2027

The Thai government's Cabinet has decided to raise the excise tax rate on specific categories of imported electric vehicles to 35% beginning in 2027, according to a policy decision announced this week. The move represents a notable adjustment to the kingdom's existing tax framework for EV imports and signals potential changes to the automotive sector's competitive landscape.

The decision comes as Thailand seeks to balance competing priorities in the automotive industry, including supporting domestic EV manufacturing while managing revenue considerations. The new tax rate of 35% will apply to certain categories of imported electric vehicles, though the exact specifications and vehicle classifications subject to the increase were not immediately detailed.

The implementation timeline of 2027 gives manufacturers and importers more than two years to adapt their business strategies and pricing structures in response to the tax increase. Industry stakeholders are expected to assess the implications of the higher excise tax on vehicle pricing and market demand in coming months.

Thailand has been positioning itself as a regional automotive hub, with particular emphasis on electric vehicle development and production. The Cabinet's decision reflects ongoing government consideration of how taxation policy can support local manufacturing while managing the growing EV import market.