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March 1, 2023

Thailand reduces excise tax on EV batteries, increases subsidies for battery manufacturers

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electric car batteries
electric car batteries
March 1, 2023

On February 2, the National Electric Vehicle Policy Committee agreed in principle to reduce the excise tax on EV batteries and allocate 24 billion baht (US$730 million) to subsidize domestic manufacturing of batteries for electric vehicles (EVs). The National Electric Vehicle Policy Committee agreed to offer subsidies of 400 to 800 baht (US$11.40 to US$22.80) per kilowatt-hour (kWh) depending on the size of EV batteries produced. According to Energy Minister Supattanapong Punmeechaow, subsidies will be served on a first-come, first-served basis. The excise tax for EV battery-makers is set to be reduced from 8 percent to 1 percent. Under the 30@30 policy, Thailand seeks to become a regional EV hub and increase EV manufacturing capacity by 30 percent by 2030.

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