Thailand approves import duty waiver for EV parts-Xinhua

Thailand approves import duty waiver for EV parts

Source: Xinhua| 2023-03-07 22:27:00|Editor: huaxia

BANGKOK, March 7 (Xinhua) -- Thailand's cabinet on Tuesday approved an additional incentive package to promote domestic production of electric vehicles (EVs) by waiving import duties for certain parts.

The tariff exemption applies to nine lists of parts, including batteries and traction motors, imported for assembly or manufacturing of battery-powered vehicles and boats, Anucha Burapachaisri, deputy secretary-general to the prime minister and government spokesman, told a news conference.

The incentive aimed to encourage and develop the supply chain, which would support the shift in consumers' behavior towards a sustainable use of EVs, Anucha said.

The Ministry of Finance estimated the waiver, effective until the end of 2025, would lead to 3.14 billion baht (about 90 million U.S. dollars) in revenue losses per year, but it would attract local battery electric vehicle (BEV) production and promote Thailand's development as a regional EV production hub, according to Anucha.

The national EV policy committee last month agreed to lower the excise tax on EV batteries from 8 percent to 1 percent while offering subsidies for local EV battery production.