Key Takeaways
- The existing Thais Help Thais Plus co-payment scheme expires on 30 September B.E. 2569 (2026). A separate scheme operates for October and November with a materially different and larger eligible population. Participating merchants should not assume continuity of either the scheme or its customer base.
- The Government's position is now that a state subsidy confers an administrative permission rather than contractual rights. That characterisation determines how the benefit may be withdrawn and the forum in which a recipient may contest its withdrawal.
- Participants in the electric-vehicle support measure that did not complete their local production obligation are exposed to revocation of approval, recovery of the subsidy with interest, enforcement of the bank guarantee in full, and a fine, for which related group companies bear joint liability.
- No instrument entered into force on 22 September in respect of either matter. The relevant powers already existed; what has changed is their authoritative characterisation.
- Three draft instruments merit monitoring: rail safety zones extending over adjoining land, a statutory forum for disability discrimination complaints, and the reconstitution of the National Intellectual Property Policy Committee.
1. State Subsidies Confer Administrative Permissions, Not Contractual Rights
The position should be stated precisely. No instrument entered into force on this matter. The Cabinet acknowledged Opinion No. 745/2569 of the Administrative Procedure Committee of the Office of the Council of State, and approved a corresponding practice guideline addressed to government agencies. The Opinion is advisory in character. It governs the conduct of the Excise Department; it is not a judicial determination and has not been tested before the Administrative Court.
Its substance is nonetheless significant. The Excise Department had sought guidance as to whether its legal relationship with recipients of electric-vehicle subsidies arises in contract or in the exercise of administrative power. The Committee concluded that the approval of a participant and the approval of a subsidy each constitute an administrative order within the meaning of the Administrative Procedure Act B.E. 2539 (1996) (the APA); that the instrument executed by participants amounts only to an undertaking to comply with conditions attached to those orders; and that a recipient's failure to perform therefore constitutes breach of a condition rather than breach of contract. The practical consequence is that the State need not bring proceedings in order to recover. It may revoke the order, assess the amounts due, and enforce administratively. A recipient's remedy lies in the statutory right of appeal, which attaches to the order of revocation under Section 40 of the APA upon its issue.
The Cabinet extended the principle beyond the electric-vehicle measure. In respect of state subsidies granted to the private sector, the recipient alone is to execute an undertaking to comply with the applicable conditions, the granting agency is not to countersign, and agencies should refrain from describing the instrument as an "agreement", so that the relationship is not construed as contractual.
Recommended action (at the next renewal or drawdown): recipients of any Thai state subsidy, grant or investment incentive should retrieve the instrument they executed and construe it as an administrative condition rather than as a contract. Recipients should establish what the granting agency is entitled to do unilaterally, and should confirm which officer within the organisation is responsible for receiving and acting upon an order of revocation.
2. Recovery Against Electric-Vehicle Participants That Did Not Complete Offset Production
The same decision records the course the Excise Department will now take. Under the electric-vehicle support measure, participants that imported completely built-up vehicles were required to undertake local production in order to offset those imports, in the ratio of one vehicle produced for each vehicle imported by 31 December B.E. 2567 (2024), increasing to 1.5 vehicles produced for each vehicle imported where the period was extended to 31 December B.E. 2568 (2025). The Cabinet summary records that the period has expired and that certain participants did not complete the required offset production.
The recovery powers are of longer standing. They are contained in the notification of the Excise Department dated 21 March B.E. 2565 (2022), as amended, clause 16 of which entitles the Department to recover the subsidy in respect of each vehicle not offset, together with interest at the rate of 7.5 percent per annum without compounding; to enforce the bank guarantee in full; and to impose a fine equal to the excise tax, surcharge and penalty underpaid in respect of each such vehicle, assessable under the Excise Tax Act B.E. 2560 (2017). The beneficiary and any related manufacturer or operator bear joint liability for that fine. Prior to enforcing payment, the Department is required to issue a written warning affording a period of not less than seven days, under Sections 63/2 and 63/7 of the APA. That warning constitutes the final step preceding administrative enforcement; it does not mark the commencement of the appeal period.
Recommended action (immediate): participating manufacturers and importers should reconcile offset production against import volumes, obtain written confirmation of any extension or variation actually granted rather than proceeding on an assumption, and quantify exposure under the bank guarantee. Internal procedures should ensure that an order of revocation is identified on receipt, since the appeal period runs from that order.
3. The Co-Payment Scheme Expiring on 30 September Is Replaced by a Separate Scheme With a Different Eligible Population
Effective 1 October B.E. 2569 (2026). This decision carries the only deadline falling within the present week. The existing Thais Help Thais Plus 60/40 co-payment scheme expires on 30 September B.E. 2569 (2026) and is to be closed, with unexpended funds returned. Its budget was reduced to approximately 100.3 billion baht to reflect actual expenditure against some 26 million registered participants.
What the Cabinet approved is a separate and additional scheme, funded under the Emergency Decree Authorising the Ministry of Finance to Borrow Funds to Address the Impact of the Energy Crisis and to Effect the Country's Energy Transition B.E. 2569 (2026), with a combined budget of approximately 42.7 billion baht. The 60/40 element operates for October and November on approximately 32.5 billion baht, the State contributing 60 percent of qualifying expenditure subject to a ceiling of 200 baht per person per day and 1,000 baht per person for the two months in aggregate. Of particular significance to merchants, the eligible population differs from, and exceeds, that of the expiring scheme: up to approximately 32.5 million persons in three categories, the largest comprising persons who held entitlements under the former scheme but did not satisfy the 2026 registration criteria, together with holders of 2022 welfare cards who likewise did not qualify in 2026, determined on Ministry of Finance records as at 27 September B.E. 2569 (2026). Holders of state welfare cards separately receive an additional 700 baht for October in addition to their existing 300 baht entitlement, giving 1,000 baht for that month, for up to approximately 14.5 million cardholders.
Recommended action (before 1 October 2026): participating merchants, restaurant and franchise operators and payment service providers should confirm their registration and settlement arrangements under the new scheme rather than assuming that the expiring scheme continues, and should revise forecasts to reflect the revised ceilings. The qualifying customer base changes on 1 October, and the ceiling of 1,000 baht per person applies to the two months in aggregate rather than to each month.
Draft Instruments: Approved in Principle, Not Yet in Force
Rail safety zones extending over adjoining land. A draft ministerial regulation under Section 26 of the Rail Transport Act B.E. 2568 (2025) has been referred to the Office of the Council of State. As drafted, a rail system zone extends not less than 3 metres on either side of the rail structure, and a rail safety zone not less than a further 10 metres beyond it at grade and at elevated level, giving approximately 13 metres on either side in aggregate, with depth-dependent distances underground. The obligation to establish the zones falls upon the rail project owner and not upon adjoining landowners; the zones will nonetheless extend over land in adjoining ownership and occupation. Owners and developers of sites along or above an alignment, and parties planning basement construction, piling or utility works near a tunnel, should map the indicative footprint against their holdings and await the gazetted text before committing design expenditure.
A statutory forum for disability discrimination complaints. A draft Act amending the Persons with Disabilities Empowerment Act B.E. 2550 (2007) would define unfair discrimination on the ground of disability, bring autistic persons expressly within the statutory definition, and constitute a committee empowered to determine complaints, grant interim protective relief before determination, and award compensation, with penalties for failure to comply with its orders. The existing regime is unaffected: under Ministerial Regulation B.E. 2554 (2011), an employer of 100 or more employees must employ one person with a disability for every 100 employees, with one further person where the remainder exceeds 50, and may alternatively contribute to the fund under Section 34 or provide support by the means permitted under Section 35. Employers should establish which of those three routes they in fact rely upon before a body empowered to award compensation is constituted.
Reconstitution of the National Intellectual Property Policy Committee. A draft Regulation of the Office of the Prime Minister would reconstitute the National Intellectual Property Policy Committee under the chairmanship of the Prime Minister, the founding regulation of B.E. 2555 (2012) having been repealed with effect from 8 May B.E. 2569 (2026) as obsolete and duplicative of the functions of the Department of Intellectual Property. Intellectual property bearing upon national security falls expressly within the Committee's remit. The draft effects no change to any filing or enforcement procedure.
Other Decisions of Note
The Cabinet released the funding for the household disaster insurance scheme addressed in our alert of 15 September: premium of 15.5 billion baht, comprising 10 billion baht from the central contingency reserve for the current fiscal year and 5.5 billion baht committed forward under Section 42 of the Budget Procedures Act B.E. 2561 (2018), in respect of cover commencing 1 October B.E. 2569 (2026) and extending to approximately 30 million dwellings. The Cabinet further confirmed that flood assistance under the earlier criteria extends only to events occurring between 15 May and 30 September B.E. 2569 (2026), so as to avoid duplication of the insurance cover.
How We Can Assist
Our Taxation practice and our Litigation and Dispute Resolution practice act jointly in matters concerning the recovery of state subsidies, orders of revocation, enforcement of bank guarantees and appeals under the Administrative Procedure Act, including proceedings before the Administrative Court. Clients holding Thai investment incentives that have not been reviewed on an administrative law footing are invited to contact us for that purpose. Enquiries may be addressed to [email protected].
Source: summary of the Cabinet Secretariat in respect of the meeting of 22 September B.E. 2569 (2026). The summary is provisional, and the formal resolution should be verified before any decision is taken in reliance upon it.
Disclaimer: This publication is intended for general informational purposes only and does not constitute legal advice. The information contained herein should not be relied upon as a substitute for specific legal counsel. For advice tailored to your circumstances, please contact Dej-Udom & Associates directly.