The Government is promoting investment in the production of electric vehicles in order to help tackle the PM 2.5 dust problem in the long run.
The Thailand Board of Investment (BOI), during its recent meeting chaired by the Prime Minister, approved a set of incentives covering all types of electrical vehicles, namely passenger cars, buses, trucks, motorcycles, three-wheelers, and ships.
For instance, qualified projects on four wheelers, with a total investment package worth at least five billion baht, will be granted a three-year tax holiday for plug-in hybrid electric vehicles (PHEVs). As for battery electric vehicles (BEVs), an eight-year corporate income tax exemption period will be offered and will be extendable in case of R&D investment/expenditures.
Concerning qualified projects with total investment worth less than five billion baht, three-year tax holidays will be granted on PHEVs and BEVs, but the tax holiday period for BEVs can be extended, if the project meets the set requirements, such as production commencement by 2022, additional parts production, minimum production of 10,000 units within three years, and R&D investment/expenditures.
Qualified projects on motorcycles, three-wheelers, buses, and trucks will be granted a three-year corporate income tax exemption, extendable if meeting additional requirements.
Projects on electric-powered ship production projects (for vessels with less than 500 gross tonnage), will be eligible for eight years of corporate income tax exemption.
BOI stated that several investors from various countries have shown an intention to use Thailand as their production base for the production of electric vehicles.
Source: The Government Public Relations Department