The Board of Investment (BoI) approved enhanced incentives and conditions on Thursday for investments in charging stations for electric vehicles (EV), a move to accelerate the growth of the domestic EV market and quickly expand related infrastructure.
Speaking after a BoI meeting chaired by the prime minister, Duangjai Asawachintachit, BoI secretary-general, said the board agreed to allow smaller charging stations eligibility for three years of tax benefits, an extra incentive on top of the existing five-year corporate income tax exemption now awarded to investment in charging stations with at least 40 chargers, 25% of which are the DC (direct current) type.
The revised measures also abolish two requirements: the condition barring investors from receiving 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, said the BoI.
To ensure rapid expansion of charging facilities, a combination of several support measures may be required, said the board.
Charging station investors are required to adhere to 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 can be developed as a mechanism for efficient management for both operators and battery electric vehicle (BEV) users.
"We listened to EV investors' concerns and revised the measures to ensure our incentives stay relevant in a fast-changing business environment. This will enable investors, particularly small firms and startups, to have more access to BoI benefits and manage their costs more effectively," said Ms Duangjai.
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.
In a related development, the BoI reported the agency received applications for investment promotion worth a total of 111 billion baht during January to March, a decrease of 6% compared with the same period last year.
The decline was attributed largely to the impact of the global geopolitical and economic challenges, partly softened by a small rise in the number of project applications.
However, the number of applications, 378 projects, represented an increase of only 1% over the same period the previous year.