Thailand to revise PHEV duties from January 2026 – electric-only range to primarily determine taxation rate

Thailand is set to revise its excise duty system for plug-in hybrid electric vehicles (PHEVs) from next year in what is a move to increase both manufacturing prospects and consumer adoption of such vehicles, with the biggest change being the utilisation of electric driving range as the primary determinant for taxation, The Nation reports.

Effective from January 1, 2026, PHEVs capable of travelling at least 80 km on a single charge will benefit from a lower 5% excise duty rate. Additionally, the previous regulation imposing a 45 litre limit on fuel tank capacity for the type has also been scrapped.

Under the revised tax structure, PHEV passenger vehicles with up to 10 seats meeting the director-general’s specifications and achieving an electric range of 80 km or more per charge will be taxed at 5%, while the same PHEV types with an electric range below 80 km per charge will be subject to a 10% excise duty.

The changes were announced earlier this week by the country’s deputy finance minister, Paopoom Rojanasakul, following the cabinet’s approval of the excise department’s proposed ministerial regulation.

According to the publication, the key objective of this revision is to create a clearer distinction in tax treatment between PHEVs and standard hybrid electric vehicles (HEVs), with the electric driving range becoming the sole criterion for calculating excise duty.

The removal of the fuel tank restriction will also aid the country as it attempts to position itself as a more attractive manufacturing base for PHEVs that are in line with global standards. Officials noted that the previous rule necessitated the production of non-standard fuel tanks, which created unnecessary complications and hindered the appeal of PHEVs to consumers.

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