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EV makers warned not to take advantage of tax reductions, support funds

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The Excise Department has ordered electric vehicle (EV) manufacturers/importers to detail costs in a bid to prevent them from misusing tax reductions or support funds.

Spokesman Nattakorn Utensut said on Wednesday that the department had set up guidelines to support EV manufacturing to ensure buyers benefit from tax reductions and support funds.

“Therefore, manufacturers must first declare the exact price structure, import cost, management fee and discount for buyers to the department for approval,” he said.

The department also ordered carmakers not to release “minor changes” involving equipment and function systems for car models for two years so there won’t be any increase in EV prices.

The automakers must also not use government discounts as standard discounts for buyers because car dealers or brands usually provide discounts and bonuses to buyers, Nattakorn made clear.

EV makers can avail of three types of support:

One is excise tax reduction from 8 to 2 per cent to import EVs.

The other is a support fund – according to battery size – of 70,000-150,000 baht for each car and 18,000 baht for each motorcycle.

The third is import duty reduction on completely built up EVs. Each car can get up to 40 per cent tax reduction if the price does not exceed 2 million baht. EVs costing 2 million to 7 million baht can avail of a 20 per cent tax reduction.

A source said two Chinese brands – MG and Great Wall Motor – are interested in the measures and would sign an agreement next week. Meanwhile, Honda and other top automakers are considering the measures and are expected to come on board later.

 

EV makers warned not to take advantage of tax reductions, support funds

Published : March 17, 2022

By : THE NATION