The Thailand EV Regulations for Investment
Investment in Thailand is getting easier, especially for automobiles. The country is actively promoting to investors that they are ready to produce green vehicles. Thailand EV regulations are the points they offer to develop their economy in general. This country has ambition to be a big hub for EV in the region.
Since the government takes this way seriously, they are creating some regulations for the manufacturers. They must obey the rules, yet the investors will be able to enjoy the regulation since it is a win-win solution. What kind of regulation that the Thai government made? Here is a summary.
The Thailand EV Regulations
- A package incentives
Thailand’s government has this idea to accelerate the development of the business. The package incentives are the most beneficial for investors because they can produce electric vehicles at less cost. It is widespread and applied to both local and foreign investors.
The package incentive has a special aim, where foreign investors might look at Thailand as a promising place to do the investment in the automobile sector. The corporates have a right to get the tax exemption as part of incentive packages. It lasts long until 15 years.
- Reducing tax rates
The government also reduces the tax rates to support the manufacturers. It attracts more investments that the country needs for a smooth EV roadmap in Thailand. The reduction will happen when the manufacturers have been established after 15 years.
Then how about in the period of 15 years? The manufacturers can enjoy the support of tax exemption. It is a big bonus from the Thailand government. As long as the manufacturers are taking more than 85 percent of workers locally, they will allow the business to run in three main areas in Thailand.
- Exemption of import duties
Import duties are the factors that the manufacturers can’t avoid. The impact is the price of the output can be high and it will not attract customers. Hence, the Thai government will eliminate it with the exemption of import duties. The price of EV will be lower and it is the aim of EV roadmap in Thailand.
This exemption applies to the raw materials and components from the countries that are in Free Trade Agreement. This policy also allows other countries to compete and their economy to grow. This offer is starting in 2022 until 2025. The next policy of import duties is to be announced.
Thailand EV regulations are helpful for investors who want to establish their mega business in Thailand. The automotive industry in Thailand is running smoothly for the electric vehicle sector. The regulations from stakeholders will improve Thailand’s economy and supports the country to be a mega-hub of EV in the future.