The Industry Ministry of Thailand is pushing ahead with its ambitious plan to bring prices of electric vehicles (EVs) closer to those of traditional fuel-powered cars by reducing the import duty on auto parts used to assemble EVs in the country.

A four-seater compact EV developed by FOMM (Photo: Bangkokpost.com)

The Office of Industrial Economics has been assigned to conduct a feasibility study of tax reduction options and forward its findings to the National Electric Vehicle Policy Committee, known as the EV board, for consideration this month.

Industry Minister Suriya Jungrungreangkit expects the taxation measure to help increase demand in Thailand for EVs, which are still costly, and at the same time support state measures to curb hazardous PM2.5 dust emitted by old car engines.

Tax reductions will make EVs cheaper, he said, adding the current tax rate stands at 80 percent of auto part prices.

The research team will consider tax reductions for auto parts and completely built EVs.

Other factors taken into consideration include the state plan to increase the number of EVs in the country and affordable EV prices for buyers, which may range from 700,000 to 800,000 THB (22,300-25,500 USD), Suriya said.

Under the country’s EV master plan, officials plan to develop the domestic EV industry, making Thailand a major production base in the region. The number of EVs will reach 750,000, or 30 percent of total vehicle production of 2.5 million units in 2030.

Source: VNA