Thailand reduces excise tax on EV batteries, increases subsidies for battery manufacturers
![electric car batteries](/sites/default/files/2023-09/AdobeStock_188145425_edited.png)
On February 2, the National Electric Vehicle Policy Committee agreed in principle to reduce the excise tax on EV batteries and allocate 24 billion baht (US$730 million) to subsidize domestic manufacturing of batteries for electric vehicles (EVs). The National Electric Vehicle Policy Committee agreed to offer subsidies of 400 to 800 baht (US$11.40 to US$22.80) per kilowatt-hour (kWh) depending on the size of EV batteries produced. According to Energy Minister Supattanapong Punmeechaow, subsidies will be served on a first-come, first-served basis. The excise tax for EV battery-makers is set to be reduced from 8 percent to 1 percent. Under the 30@30 policy, Thailand seeks to become a regional EV hub and increase EV manufacturing capacity by 30 percent by 2030.