BOT Unveils Three Measures to Revive SMEs; EV Import Tax Set for Potential Hike to Boost Local Production

The Bank of Thailand (BOT) is preparing three measures to improve SMEs’ access to funding after lending to the sector contracted for 16 consecutive quarters. BOT Governor Vitai Ratanakorn announced the measures include an SME Credit Portal connecting businesses with banks and non-bank lenders, a new guaranteed mechanism expected to support an additional 100 billion Baht in lending annually, and a Data Bureau using utility bills, payment records and e-statements to assess borrowers. SMEs employ 13.6 million people, or 70% of Thailand’s workforce, and contribute 35% of GDP. However, even the best-performing 30% of SMEs have only a 20–21% chance of securing loans, compared with 61% for strong large companies. SMEs also pay average interest of 6.9%, against 3.9% for larger firms. Vitai said the share of “zombie firms”—businesses unable to generate enough income to cover their interest payments—had risen from 2% to nearly 6%. The central bank will focus its assistance on viable and profitable SMEs with growth potential, which account for about 38% of the sector. In economic policy, Finance Minister Ekniti Nitithanprapas announced a plan to offer subsidies of 50,000 Baht per household for solar-panel installations, targeting at least one million households with a budget of 50 billion Baht. Registration is set to open in mid-October. Separately, Pimchanok Pitfield, Thailand’s Permanent Representative to the World Trade Organization (WTO) and World Intellectual Property Organization (WIPO), has announced her intention to resign from government service following her transfer back to the Ministry of Commerce as an Inspector-General. She wishes to prioritize spending time with her mother and aims to leave government service earlier than her planned departure in February 2027. This transfer is part of a reshuffle of nine senior Commerce Ministry officials approved by the Cabinet on September 8, 2026. In the private sector, beverage company Ichitan Group (ICHI) is entering the fertilizer market by forming Tan Fertilizer, a joint venture with fertilizer producer Eakyongwong. The company aims to generate 1.5 billion baht in revenue during its first three years, focusing on the premium NPK fertilizer segment within Thailand's chemical fertilizer market, which is worth over 80 billion baht annually. Furthermore, the Thai government is considering a significant increase in excise tax on fully imported EVs that do not use locally produced components, potentially raising the rate from 10% to 31–39%. This policy aims to encourage local manufacturing and investment, strengthen domestic supply chains, and prevent Thailand from becoming primarily an import market. The current local-content requirement of 40% is also being reviewed for potential tightening to 50% or stricter calculation criteria. If the higher tax is implemented, a new EV priced at 1 million Baht could face an additional tax burden of roughly 200,000–300,000 Baht compared with the current rate. Existing advance orders may be protected under the current tax rate. Source: Thai Enquirer