Excellent Business Opportunity for Entrepreneurs with the EV Incentives Package
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The Thai cabinet has recently approved a package of incentives including tax cuts and subsidies to promote a shift to Electric Vehicles (EVs) in ASEAN's major auto production base. The package for 2022-2025 is in line with a zero-emission vehicle policy plus a goal to ensure 30% of Thailand's total auto production are EVs by 2030.
The measure is divided into 2 phases, namely 2022-2025 in promoting the use of electric vehicles in 3 groups: car, pickup truck, and motorcycle.
- A subsidy for a car and a pickup truck THB 70,000-150,000 per car and 18,000 baht per motorcycle
- Reduce the excise tax on cars from 8% to 2% and pickup trucks to 0%
- Reduce import duty on imported cars - Completely Built Up (CBU) by up to 40% for cars until 2023
- Exemption of import duty on cars - Completely Knocked Down (CKD) amount on 9 items
The policy and the incentive package on EVs will play a signification part in the transformation of Thailand into a low-carbon society and reduce greenhouse gas emissions. It will also help to accelerate EV technologies, infrastructures, and batteries. The adoption of the EVs offers rapid path towards providing more sustainable mobility. The incentive package will increase the consumer demand for EVs, sectors will need to collaborate to ensure smooth transition. Cross-sector collaboration is the key in leading the transition to EVs; governments and private industry must collaborate, with incentives driving both demand and supply.
Credit: bangkokbiznews
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