In a decisive move to encourage greener transportation and enhance its electric vehicle industry, Thailand’s Cabinet has authorized a significant modification to the excise duty structure for plug-in hybrid electric vehicles (PHEVs). The modification, announced on Tuesday, will take effect on January 1, 2026.
The newly adopted regulation lowers the excise tax rate to 5% for PHEVs that can travel at least 80 km exclusively on electricity. This represents a shift from the old system, in which many criteria influenced taxation. The electric driving range will now be the sole basis for computing excise duties.
The Cabinet has also removed the long-standing 45-litre fuel tank capacity limit for these vehicles. This adjustment is expected to remove design limits and allow automakers to adhere to international standards more freely. Authorities feel that this change will make Thailand a more feasible and competitive destination for PHEV manufacturing.
Deputy Finance Minister Dr. Paopoom Rojanasakul confirmed the modifications, noting that the new regulation proposed by the Excise Department has gained complete government backing. Officials stated that the previous gasoline tank restriction caused manufacturing issues and reduced vehicle popularity in the market.