Govt must be thorough to trade BoI benefits with tax cut
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Board of Investment Deputy Secretary-General Songsak Limbanyen urged the government to be thorough, before proceeding with the plan to abolish investment privileges in return for lower corporate tax rate.
He asked if the government is certain that scrapping BoI privileges would help it achieve the tax revenue target, as over 50 per cent of companies which pay taxes now are operating with BoI privileges. Meanwhile, these companies also generate other tax revenue, like individual income taxes levied on their employees.
The BoI is part of the mechanism to create jobs and build tax base, he said.
He added that the BoI is also brushing up its incentives, with plans to cancel privileges to some industries and increase privileges to others.
The government plans to cut the corporate tax rate from 30 per cent to 23 per cent next year and 20 per cent in 2013.
