Thailand to cut excise tax for car production, minister says

BANGKOK, Aug 7 : Thailand plans to cut excise tax rates for automakers that establish production facilities in the country to encourage greater use of locally sourced parts and raw materials, the finance minister said on Friday.

• The ministry expects to submit the proposal to the cabinet by September, Ekniti Nitithanprapas told reporters.

• The new measure will offer direct tax reductions, he said, without giving further details.

• At a seminar, Ekniti said the government aimed to achieve potential growth of more than 3 per cent over the next four years and to increase investment to 30 per cent of gross domestic product over the period.

• Thailand is aiming to become a high-income country within 12 years, he said.

• The government plans to provide financial support of 50,000 baht ($1,512) per household along with loans for the installation of rooftop solar panels, he said.

• It had planned to spend half of a 400 billion baht ($12 billion) borrowing decree on the clean energy transition.

• Thailand is also working on a $700 million EV plan to replace up to 80,000 vehicles.

• Last month, the finance ministry raised its 2026 growth forecast to 2.5 per cent. Last year’s growth of 2.4 per cent lagged regional peers.

($1 = 33.07 baht)