Thailand has begun implementation of its new excise tax structure for all types of vehicles sold in the Kingdom starting from 2026.
According to the Excise Department and the Office of Industrial Economics (OIE), new vehicle (automobiles and motorcycles) taxation is based on multiple factors, rather on just engine size, output or emissions.
They include vehicle type (ICE, HEV, PHEV and BEV), carbon dioxide emission (g/km), safety standard (UN R94, UN R95, UN R13h), local content percentage and ADAS (Advanced Driver Assistance Systems).
In addition, participation in Board of Investment (BOI) projects for local production will also earn special incentives for automakers in the form of lower excise tax for its products.
There following are details of the restructured automobile and motorcycle excise tax rules and regulations in Thailand, which has taken effect since Jan 1 this year..
🟠1. Restructuring Guidelines
The new tax calculation will no longer be based solely on engine size. Instead, it will consider:
1.1 Vehicle Type/Platform & Technology: (ICE, HEV, PHEV, BEV).
1.2 CO2 Emission: (g/km).
1.3 Safety Standards: (UN R94, UN R95, UN R13h).
1.4 Local Content: Usage of domestically produced parts.
1.5 Advanced Driver Assistance Systems (ADAS).
🟠 2. Internal Combustion Engine Passenger Cars (ICE)
(Must pass UN R13h + ABS/ESC criteria and possess at least 2 out of 6 ADAS systems)
Tax rates are divided by CO2 emissions and year periods as follows:
2.1 CO2 ≤ 100 g/km:
Year 2026-27 = 13%
Year 2028-29 = 14%
Year 2030 = 15%
2.2 CO2 101-120 g/km:
Year 2026-27 = 22%
Year 2028-29 = 24%
Year 2030 = 26%
2.3 CO2 121-150 g/km:
Year 2026-27 = 24%
Year 2028-29 = 27%
Year 2030 = 29%
2.4 CO2 151-200 g/km:
Year 2026-27 = 29%
Year 2028-29 = 31%
Year 2030 = 33%
2.5 CO2 > 200 g/km:
Year 2026-27 = 36%
Year 2028-29 = 34%
Year 2030 = 38%
2.6 Engine > 3,000 CC: Fixed rate 50%
2.7 Non-Compliant (Does not meet criteria):
CO2 ≤ 150: 35%
CO2 > 150: 40%
🟢 3. Hybrid Electric Vehicles (HEV)
(Conditions: Manufacturer in/out of Free Zone (FZ), must have 2 of 6 ADAS, and use Thai-made batteries)
3.1 CO2 < 100 g/km:
Year 2026-27 = 6%
Year 2028-29 = 8%
Year 2030 = 10%
3.2 CO2 101-120 g/km:
Year 2026-27 = 9%
Year 2028-29 = 11%
Year 2030 = 13%
3.3 CO2 121-150 g/km:
Year 2026-27 = 14%
Year 2028-29 = 16%
Year 2030 = 18%
3.4 CO2 151-200 g/km:
Year 2026-27 = 19%
Year 2028-29 = 21%
Year 2030 = 23%
3.5 CO2 > 200 g/km:
Year 2026-27 = 26%
Year 2028-29 = 24%
Year 2030 = 28%
3.6 Engine > 3,000 CC: 40%
🟩 BOI Project Incentive
If participating in the BOI HEV project with additional investment meeting conditions, receive a continuous fixed rate from 2026–2032:
CO2 < 100g/km: 6%
CO2 101-120g/km: 9%
Investment & Local Content Conditions (2024–2027):
1. Total Investment: Not less than Bt3 billion.
2. Local Content:
– Must use batteries produced domestically (at least Pack Assembly level).
– Must use High-value e-Parts* (e.g. Traction Motor) and medium parts (e.g. BMS) as specified.
3. Factory & Capacity:
Factory must play a significant role in production and maintain machine capacity.
– Must have a factory assembling ICE engines or key parts domestically (at least four out of five 4C** items) OR have local content proportion ≥ 40% (per Customs/Ministry of Industry calculation).
– Must establish an R&D center OR have R&D staff ≥ 0.75% of total office staff (Ref: EV Board, Nov 25, 2025).
4. Safety: Must install at least 4 out of 6 ADAS systems.
*High Value Parts include: Motor, Inverter and Reduction Gear while Medium Value Parts include:
(1) BMS
(2) DCU
(3) AC Compressor for BEV
(4) DC/DC Converter
(5) Electrical Circuit Breaker
(6) High Voltage Harness Battery
(7) Cooling System
(8) Regenerative Braking System.
**4C items
(1) Cylinder Head
(2) Cylinder Block
(3) Crankshaft
(4) Camshaft
(5) Connecting Rod
🟣 4. Plug-in Hybrid Electric Vehicles (PHEV)
(Conditions: Must have 2 of 6 ADAS and use Thai-made batteries)
4.1 Electric Range (E-Range):
≥ 80 km = 5%
< 80 km = 10%
4.2 Non-compliant or others:
Year 2026-29 = 15%
Year 2030 = 20%
4.3 Engine > 3,000 CC = 30%
Note: The condition limiting fuel tanks to 45 liters has been cancelled.
🔵 5. Battery Electric Vehicles (BEV)
(Conditions: Must have 3 of 6 ADAS, use Thai-made batteries, and key parts)
5.1 Qualified under conditions: Tax rate 2%
5.2 Non-qualified or others (e.g., Imports): Tax rate 10%
🟤 6. Pickup Trucks
(Applied from 2026–2035)
Criteria:
1. Must be an industrial operator (in/out of FZ).
2. Vehicle size and payload defined.
3. ADAS: 1 out of 6 systems (Enforced starting 2028).
4. Must use domestically produced/assembled batteries in 2026–2034, and domestically produced batteries from 2035 onwards (Thai battery required for electric models).
6.1 No Cab Pickup (≤ 3,250 cc):
CO2 ≤ 185 g/km: 3% (Gas/Diesel) = 2% (B20)
CO2 186-200 g/km: 4% (Gas/Diesel) = 3% (B20)
CO2 > 200 g/km: 5% (Gas/Diesel) = 4% (B20)
6.2 Space Cab Pickup (≤ 3,250 cc):
CO2 ≤ 185 g/km: 4% (Gas/Diesel) = 3% (B20)
CO2 186-200 g/km: 6% (Gas/Diesel) = 5% (B20)
CO2 > 200 g/km: 8% (Gas/Diesel) = 7% (B20)
6.3 Double Cab Pickup (≤ 3,250 cc):
CO2 ≤ 185 g/km: 8% (Gas/Diesel) = 6% (B20)
CO2 186-200 g/km: 10% (Gas/Diesel) = 9% (B20)
CO2 > 200 g/km: 13% (Gas/Diesel) = 12% (B20)
6.4 Double Cab PHEV
Qualified = 5%
6.5 BEV Pickup:
Qualified = 2%
Non-qualified = 10%
Note: Engine > 3,250 cc = 50%
⚫️ 7. Passenger Pickup Vehicles (PPV / SUV based on Pickup)
Criteria:
1. Industrial operator (in/out of FZ).
2.ADAS: 2 out of 6 systems.
3. Built on a pickup chassis.
7.1 PPV Engine ≤ 3,250 cc:
CO2 ≤ 185 = 18% (Gas/Diesel)/16% (B20)
CO2 186-200 = 20% (Gas/Diesel)/18% (B20)
CO2 > 200 = 25% (Gas/Diesel) = 23% (B20)
7.2 PPV (PHEV) Qualified =10%
7.3 Engine > 3,250 cc = 50%
🟩 8. Mild Hybrid Electric Vehicles (MHEV)
Definition: A hybrid system using a small electric motor to assist the engine but cannot drive on electricity alone.
8.1 If conditions are met, receive continuous rates (2026-2032):
CO2 < 100g/km = 10%
CO2 101-120g/km = 12%
Conditions:
1. Investment:
2024–2027: Not less than Bt1,000 billion
2024–2028: Not less than Bt5 billion
2. Local Content
Must fulfill all:
– Use at least 4 out of 5 engine parts produced domestically.
– Use domestically produced batteries (at least Pack Assembly).
– Use key parts: Traction Motor OR parts assisting propulsion produced by a manufacturer in Thailand.
3. Safety: Install ADAS ≥ 4 out of 6 systems specified by Excise Dept.
(Note: The 5 Engine Parts are Cylinder Head, Cylinder Block, Crankshaft, Camshaft, Connecting Rod)
If conditions are NOT met (Taxed based on CO2):
8.2 CO2 < 100 g/km:
Year 2026-27 = 13%
Year 2028-29 = 14%
Year 2030 = 15%
8.3 CO2 101-120 g/km:
Year 2026-27 = 22%
Year 2028-29 = 24%
Year 2030 = 26%
🟡 9. Motorcycles
(Criteria: UN75 or TISI)
9.1 ICE Motorcycles:
CO2 ≤ 50 g/km: Year ’26-’29 (3%) | Year ’30 (5%)
CO2 51-90 g/km: Year ’26-’29 (6%) | Year ’30 (10%)
CO2 91-130 g/km: Year ’26-’29 (10%) | Year ’30 (15%)
CO2 > 130 g/km: Year ’26-’29 (20%) | Year ’30 (25%)
Non-compliant: Year ’26-’29 (25%) | Year ’30 (30%)
9.2 Electric Motorcycles (BEV):
* Voltage ≥ 48V = 1%
* Voltage < 48V = 0%
🛡️ 10. Six ADAS Systems
1. AEB: Advanced Emergency Braking
2. FCW: Forward Collision Warning
3. LKAS: Lane Keep Assist System
4. LDW: Lane Departure Warning
5. BSD: Blind Spot Detection
6. ACC: Adaptive Cruise Control
