Bangkok: The Excise Department is gearing up to implement a new tax collection strategy on Thai tobacco exports and is advocating for the advancement of electric vehicles to enhance the nation's position as a key export hub.
According to Thai News Agency, the Director-General of the Excise Department, Mr. Pornchai Theeravech, announced that the restructuring of cigarette taxes is set to be finalized by October. The department is preparing to implement a system where taxes on Thai tobacco exports are collected upfront, allowing businesses to request refunds upon providing evidence of actual export. This initiative aims to address the issue of tobacco products exempted from taxes for export being resold domestically at reduced prices. The proposal is currently in the public consultation phase and is expected to be enacted by the end of 2026. Mr. Theeravech emphasized the importance of this change, citing the recent seizure of over 500,000 packs of smuggled cigarettes in the past 11 months as evidence of existing loopholes that need to be addressed.
The Director-General also elaborated on the impending changes to the car tax structure, which is aimed to be completed by September. The new structure is founded on three key principles: encouraging investment in electric vehicles beyond mere importation, transforming Thailand from the "Detroit of Asia" into a leading export hub for electric vehicles, and increasing the use of local content in production lines. Currently, the country produces 170,000 electric vehicles and employs 25,000 people in this sector, with plans for further expansion. Mr. Theeravech highlighted the department's commitment to supporting pollution reduction efforts through these initiatives. He underscored the importance of viewing electric vehicles as part of an evolutionary shift in the automotive industry, with the transition from 2022-2026 marking the beginning of a new phase for electric vehicles in Thailand.