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Thailand’s EV Board Offers tax breaks for Electric Vehicles

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Thailand's EV Board Offers tax breaks for Electric Vehicles

(CTN News) – According to an official, the Thailand National Electric Vehicle Policy Committee (EV Board) has agreed to provide tax breaks to enterprises that purchase electric buses and trucks.

On Wednesday, Narit Therdsteerasukdi, secretary-general of the Office of the EV Board, announced that the board has also approved new measures to promote the use of e-buses and e-trucks to cut carbon emissions and assist Thailand in achieving its net-zero target.

Thailand Aiming for 10,000 Commercial Electric Vehicles

Narit spoke to the media after the EV Board met at Government House, chaired by Prime Minister Srettha Thavisin.

He said the board expects the steps to encourage the production of large commercial electric vehicles.

Regarding the most recent tax benefit, he stated that the board agreed to allow firms to deduct the cost of purchasing e-buses or e-trucks.

He noted that the write-off can be worth two times the value if the vehicle is purchased locally and 1.5 times the value if imported. The board has not established a price ceiling for the transactions.

The Revenue Department has been entrusted with developing new regulations to enforce the measures, which will remain in effect until the end of next year.

Narit noted that these steps were added to the previously implemented EV3 and EV3.5 measures to promote the usage of electric automobiles, pickup trucks, and motorcycles.

“The board believes the new measures will lead to the use of some 10,000 large commercial electric vehicles and this will make a significant dent in carbon emissions,” he said.

The board also approved a measure to encourage the production of EV battery cells in Thailand, moving the country closer to becoming a regional EV manufacturing powerhouse.

Foreign investors can request financial support and investment advantages from the Competitiveness Enhancement Fund, which the Board of Investment oversees.

This legislation would encourage foreign investors to invest in the production of EV battery cells, which would be a critical component of the electric vehicle sector.

The preliminary prerequisites for international investors to acquire financial assistance and investment advantages are:

• Must be a top brand used by EV manufacturers.

• Must have operational strategies for manufacturing battery cells and be capable of producing battery cells for energy storage systems (ESS).

• Be able to produce batteries with a capacity of 150 watt-hours per kilogramme (Wh/kg).

• Battery cells must have over 1,000 recharge cycles.

• Must apply for funding by 2027.

Narit also stated that the commission in charge of the fund will develop precise criteria for battery firms seeking government assistance.

“Batteries are essential to the EV industry.” Narit stated that while there are manufacturers of battery modules and battery packs, there are no manufacturers of primary battery cells.

He added that producing battery cells necessitates superior technology, and the sector will assist other industries that demand an energy storage system.

The EV board has also agreed to adjust the EV3.5 measures in the second enforcement phase, such as expanding them to include 10-seat passenger automobiles.

E-bikes with less than 3kWh capacity will also be eligible if they can travel more than 75 km on a full charge.

Narit said that the EV3 and EV3.5 packages registered 76,000 electric vehicles last year, representing a 6.5-fold increase over the previous year.

Meanwhile, as of the end of last year, the BOI had approved 103 EV manufacturing projects, totaling 77.19 billion baht in investment, he said. These include 18 EV manufacturing projects totalling 40 billion baht, nine e-bike manufacturers for 848 million baht, and three e-bus and e-truck production projects worth 2.2 billion baht.

The BOI also approved 39 ESS projects totaling 23.9 billion baht.

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