BOI approves new EV incentives package plus projects worth Bt35bn
November 4, 2020
The Board of Investment (BOI) on Wednesday approved a package of incentives for Thailand’s electric-vehicle (EV) manufacturing supply chain, with a focus on critical parts including batteries.
The board also approved EV-related projects worth Bt35.7 billion in several sectors.
After a board meeting chaired by PM Prayut Chan-ocha, BOI secretary-general Duangjai Asawachintachit said the package would accelerate the development of EV production in Thailand and allow the sector to move into higher gear.
The EV incentive measures replace the first package which expired in 2018.
They cover cars, buses, trucks, motorcycles and ships.
Cars: Corporate tax holidays of three years for plug-in hybrid (PHEV) projects and eight years for battery electric (BEV) projects with at least Bt5 billion invested – extendable for R&D investment in BEV. Projects worth less than Bt5 billion are eligible for three-year tax holidays – extendable for BEV projects that start by 2022, produce additional parts, produce at least 10,000 units within three years, or invest in R&D.
Motorcycles, three-wheelers, buses and trucks: Three-year tax holiday, extendable under certain conditions.
Electric-powered ship production projects, for vessels with less than 500 gross tonnage, are eligible for eight years of corporate income tax exemption.
The BOI also added four more components to its list of critical EV parts – high voltage harness, reduction gear, battery cooling system and regenerative braking system. Manufacturers of these components all receive eight-year corporate tax exemptions. To promote local EV battery production, the BOI approved additional incentives for the production of both battery modules and battery cells for the domestic market by granting a 90 per cent reduction of import duties for two years on raw materials not available locally.
The BOI has already approved 26 EV manufacturing projects with a combined production capacity of over 566,000 units per year. Five are for hybrid electric vehicles (HEVs), six for PHEVs, 13 for BEVs, and two for electric buses.
Seven have started commercial operations – Nissan, Honda and Toyota for HEVs; Mercedes Benz and BMW for PHEVs; and newcomers FOMM and Takano for BEVs.
The agency also approved 14 projects to make critical parts for EVs, including 10 battery production plants.
Source: The Nation