The EV Board has agreed in principle to a three-tier excise tax on EVs. Locally produced vehicles with local content pay the lowest rate, domestically assembled vehicles with imported parts pay more, and completely built-up imports pay the most. The Excise Department will set the Tier 3 rate first, and importers get a grace period. Today's rates are 2% for BOI-promoted domestic plants, 8% for other domestic production and 10% for imports. K-Research expects imports to fall and vehicle prices to rise, and says local-parts demand may grow. No final rates or dates were given. If you supply parts, components or services to EV or auto makers, watch for local-content rules. If you sell or import EVs, plan for higher costs and a possible grace-period deadline.
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