Thailand’s finance minister orders an urgent automotive excise tax review to level the playing field for local manufacturers against cheaper FTA imports.
Thailand’s Ministry of Finance is accelerating a comprehensive overhaul of the country’s automotive excise tax structure across all vehicle categories—including internal combustion engines (ICE), hybrids, and electric vehicles (EVs).
The policy shift aims to establish a level playing field for domestic manufacturers and eliminate a longstanding tax disparity that allows vehicles imported under Free Trade Agreements (FTAs) to undercut locally produced units.
The directive follows recent announcements by Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, who confirmed that the ministry is evaluating excise tax reductions for automakers that establish local production hubs and source domestic components.
Ekniti revealed he has instructed the Excise Department to urgently review and restructure current automotive rates. The objective is to restore market equity and support manufacturers that commit genuine capital investment and create local employment within Thailand.
