The EV Board has agreed in principle to a three-tier EV excise tax: lowest for locally produced or local-content vehicles, higher for vehicles assembled locally from imported parts, highest for fully built-up imports. Today the rates are 2% (BOI-promoted domestic plants), 8% (domestic without promotion) and 10% (imports). The specific local-content proportions and import volume limits are still unclear, and automakers say investment decisions are on hold until details are published. For parts makers and suppliers, this points to local content and supply-chain integration as the route to better tax treatment. Watch for the detailed rules before changing production or sourcing plans.
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