The Thailand Board of Investment (BOI) HAS approved revised incentives and conditions for investments in the electric vehicle (EV) sector in line with the Thai government’s policy to accelerate the growth of the domestic market for EV.
BOI said in a statement that the revision is also aimed at hastening the expansion of the related infrastructure for EV, especially charging stations.
The revised measures also include allowing smaller charging stations to be eligible to 3-year tax benefits, in addition to the 5-year corporate income tax exemption available to investments for charging stations with at least 40 chargers, 25 percent of which should be the direct current type, secretary general of the BOI, Duangjai Asawachintachit, said a press conference.
Additionally, BOI abolishes two requirements, namely the condition barring investors to receive additional benefits from other agencies, and the requirement for ISO certification. These two conditions are no longer relevant given that some chargers could be installed in other establishments such as hotels and condominiums, not necessarily at typical charging stations. Moreover, in order to ensure rapid expansion of charging facilities, a combination of several support measures may be required.
Investors intending to build charging station are now only required to adhere to the relevant safety regulations and to submit either a plan to implement an EV Smart Charging System or to connect to an EV Charging Network Operator Platform which is to be developed as a central mechanism to effectively manage both station operators and EV users.
“We have listened to the EV-related investors’ concerns and revised the measures to ensure that our incentives stay relevant in a fast-changing business environment. This will enable investors, particularly SMEs and startups to have more access to BOI benefits, and manage their costs more effectively,” said Duangjai, who was speaking after a board meeting chaired by Prime Minister Gen Prayut Chan-ocha.
The BOI already provides comprehensive incentives to the EV sector’s supply chain, with measures to promote the manufacturing of both complete vehicles and essential parts.
The total investment for the first quarter stands at 110.7 billion baht (US$3.3 billion)
Earlier, Duangjai reported to the board that the total value of foreign and local investment promotion applications during the 1Q22 showed a slight decline in combined value due to the impact of the global geo-political and economic challenges, partly softened by a small rise in the number of project applications.
During the January to March period, the total of 110.7 billion baht represented a decrease of 6 percent compared with the same period last year. The number of applications for 378 projects represented an increase of 1 percent.
During this period, foreign direct investment (FDI) grew by 29 percent and accounted for 70 percent of total pledges, with 77.3 billion baht in investment value. The top three on the list of FDI sources for the quarter were Taiwan, Japan and China.
Among the targeted industries, the automotive and parts sector topped the list with investment value of 41.6 billion baht, or around 53 percent of target industries’ applications during the period, followed by agriculture and food processing with 12 billion baht, and electronics with 10.3 billion baht. Overall, the 12 targeted sectors attracted a combined value of 78.2 billion baht, representing 70.6 percent of the total pledges.
In terms of regions, the Eastern Economic Corridor (EEC), the country’s high technology and manufacturing hub, attracted the most applications with 60.4 billion baht. For details, visit www.boi.go.th.
