“Varawut” Proposes That the Cabinet Consider Imposing an Excise Tax on Imported Electric Vehicles (EVs)

Today (3 November 2026) at 8:20 AM at the Monthathip Hall International Convention Center in Mak Khaeng Subdistrict, Mueang Udon Thani District, Udon Thani Province, Mr. Varawut Silpa-archa, Minister of Industry, spoke to the press regarding the policy to promote domestic electric vehicle (EV) production, specifically concerning the potential increase in excise taxes on imported EVs. He clarified that this is an excise tax, not an import duty. He noted that Thailand’s automotive supply chain has benefited from the support of several nations—most notably Japan, which has provided backing for decades, contributing to the country’s current industrial stability.

Mr. Varawut added that the industry is now facing new competition with the arrival of electric vehicles. He emphasized the need for collaboration, noting that partners should stand together through both good times and challenges. Implementing an excise tax would allow domestic manufacturers to compete more fairly; since there are no import duties, other mechanisms such as offsets must be utilized to ensure that local operators are not placed at a disadvantage compared to those importing vehicles.

When asked how the government intends to support domestic manufacturers, Mr. Varawut stated that the focus will be on promoting the use of locally produced automotive components. He highlighted that Thailand’s key strength lies in its supply chain, comprising numerous small and medium-sized enterprises (SMEs) that form the backbone of this ecosystem. This robust supply chain instills confidence in investors—not only within the automotive sector but also across high-technology industries—encouraging them to invest in Thailand. He noted that investors from Taiwan, who recently met with the Prime Minister, have signaled plans to expand their investments in the country. Having already invested over 65 billion baht, they now intend to increase their total investment to more than 100 billion baht. He reaffirmed that Thailand possesses a strong and resilient supply chain.

Mr. Varawut added that the Ministry of Industry will today submit its recommendations to the Cabinet regarding excise tax measures for imported electric vehicles (EVs).