Bangkok, Ministry of Finance supports electric vehicles. Suggests that automakers use Phase 2 EV3.5 rights for batteries of 50 kwh or more to receive a subsidy of 100,000 baht/car. Reveals that in the first 11 months, 67,056 electric cars were registered, an increase of 7.9 times.
Mr. Kritsada Chinavicharana, Deputy Minister of Finance, said that after the National Electric Vehicle Policy Committee (EV Board), chaired by Mr. Settha Thavisin, Prime Minister and Minister of Finance, approved the measures. Support the use of electric vehicles, Phase 2 (EV3.5) during 4 years (2024-2027) to promote and build the country's competitiveness. Ministry of Finance Therefore aims to push Thailand to be a production base for electric vehicles in the region according to the 30@30 policy, setting automotive production targets. Zero Emission Vehicle (ZEV) emissions to be at least 30 percent of total vehicle production by 2030. Production capacity of 725,000 cars and approximately 675,000 motorcycles.
Mr. Lawan Saengsanit, Permanent Secretary of the Ministry of Finance, revealed that the measures to support the use of electric vehicles in the first phase, or EV 3, in 2022 have included importers and industrial operators participating in the EV3 measures that have entered into an agreement (MOU). With the Excise Department, there are 19 cases. There are 28,841 cars that have received subsidies according to the EV3 measure and 61,436 electric cars that have been imported but have not applied for subsidies (information as of November 30, 2023), stimulating the growth of the industry. Electric vehicles: During the first 11 months of 2023 (Jan. - Nov. '23), there were 67,056 new electric vehicle registrations, an increase of more than 7.9 times compared to the same period last year at 8,483 vehicles, a result of the EV3 measure. There was investment in the electric vehicle industry with a total value of 61,425 million baht from the project to produce battery electric vehicles. Battery-powered electric motorcycle production of key parts Including electric charging stations
Dr. Ekniti Nitithanprapas The Director-General of the Excise Department revealed that entrepreneurs participating in the EV3.0 measures can apply for additional benefits under this new measure. And entrepreneurs who have not yet participated in the project can join EV3.5 measures with support from the Excise Department as follows:
1. Passenger cars (price not exceeding 2 million baht) will receive the following benefits:
1.1 Subsidy rights
1) Battery size from 10 kwh but less than 50 kwh
1.1) Year 2024 will receive a subsidy of 50,000 baht/car.
1.2) Year 2025 will receive a subsidy of 35,000 baht/car.
1.3) Year 2026 - 2027 will receive a subsidy of 25,000 baht/car (only those produced within the country).
2) Battery size from 50 kwh and up.
2.1) Year 2024 will receive a subsidy of 100,000 baht/car.
2.2) Year 2025 will receive a subsidy of 75,000 baht/car.
2.3) Year 2026 - 2027 will receive a subsidy of 50,000 baht/car (only those produced within the country).
1.2 Right to reduce import duty rates not exceeding 40 percent (for vehicles imported during 2024 - 2025)
1.3 The right to reduce excise tax from 8 percent to 2 percent in 2024 - 2027.
2. Passenger cars (priced from 2 million baht but not more than 7 million baht) with a battery capacity of 50 kwh or more will be entitled to a reduction in excise tax from 8 percent to 2 percent.
3. Pickup trucks (only those produced within the country and price not exceeding 2 million baht) with a battery size of 50 kwh or more will receive a subsidy of 100,000 baht/car and will have the right to reduce the excise tax rate to 0 percent in 2024 - 2025 and the tax rate to 2 percent in 2025. 2026 - 2027
4. Motorcycle (Only those produced within the country and price not exceeding 150,000 baht) with a battery size of 3 kwh or more will receive a subsidy of 10,000 baht/vehicle and will have the right to reduce the excise tax rate to 1 percent in 2024 - 2027.
In addition, there are conditions for those receiving support from this project. Must produce cars To compensate for imports within 2026 in a ratio of 1 : 2 of the imported amount during 2024 - 2025 (import 1 car, compensatory production of 2 cars) or produce to compensate for imports within 2027 in a ratio of 1 : 3 (import 1 car compensatory production of 3 cars) in order to stimulate investment in the country and push Thailand to become a hub for electric vehicle production in the region.
For guidelines for importers or entrepreneurs who want to join EV3.5 measures, they must follow the following steps.
1) Must submit a letter of intent to request rights. And an agreement (MOU) has been made to be the person receiving rights according to EV3.5 measures with the Excise Department.
2) When rights have been approved Applicants must receive approval of the recommended retail price and pass an electric vehicle qualification examination before starting to sell that vehicle model.
3) In the case of importing, the importer must complete steps 1 and 2 before importing. Therefore, electric vehicles can be used to claim tax rights.
4) Requesting subsidy after sale and registration must be in accordance with the criteria and conditions set by the Excise Department.
5) Various benefits Including compensatory production conditions, penalties, as well as other criteria and conditions according to EV3.5 measures to be as specified by the Excise Department.
For electric vehicles that have already received rights under the EV3 measure but were unable to sell them in time by December 31, 2023 and wish to bring such electric vehicles to receive rights under the EV3.5 measure, this can be done. The steps are as follows:
1) The person applying for rights must submit a letter informing them of their intention to request rights. And an agreement (MOU) has been made to be the right holder according to the EV3.5 measure and must receive approval of the recommended retail price and pass inspection of the qualifications of electric vehicles before starting sales.
2) After December 31, 2023, those receiving EV3 rights must submit a letter informing the Excise Department of the remaining number of electric vehicles eligible for EV3 but unable to sell them by December 31, 2023. Before signing the EV 3.5 agreement with the Excise Department
3) Electric vehicles that are eligible under EV3 but wish to bring them to join EV 3.5 will still receive tax benefits according to EV3, but with subsidies and compensatory production conditions. as well as penalties and other conditions in accordance with EV3.5 measures
For electric vehicles that previously received rights under the EV3 measure but were unable to sell them by December 31, 2023, and do not wish to continue using such electric vehicles to receive rights under the EV3.5 measure, there will still be a burden on production. Compensate imports according to the conditions of the EV3 measure without having to return tax benefits already received.
Dr. Ekniti added that In order to make the transition from measures to support the use of electric vehicles EV3 to EV3.5 smooth and efficient according to the goals set by the government. The Excise Department has taken steps to improve the criteria and conditions. Various practices to support EV 3.5 measures in every aspect to support driving the country's economy according to government policy. and according to the strategy of the Excise Department In driving the country's economy with excise taxes.
Source: Thai News Agency