By SOMLUCK SRIMALEE
THE BOARD OF INVESTMENT yesterday approved three- and five-year tax exemptions for local investment under the “One Tambon One Manufacturer” scheme.
The three-year break is for big corporations interested in supporting local business, especially agricultural processors, while the five-year waiver is for farmers and local people who join together to build an agricultural processing plant in their district.
Hiranya Sujinai, secretary-general of the BOI said after the agency’s meeting that the projects could get a tax exemption of up to 100 per cent of their investment, but they must apply this year and start operating next year.
This incentive will cover agriculture processing, tourism and One Tambon One Product (Otop) operators.
The board also approved investment incentives for three super-clusters – Food Innopolis, an airline super-cluster and a robot super-cluster.
Food Innopolis and the airline super-cluster will offer a tax exemption for eight years and also extend a discount of half of corporate taxes for the next five years.
The aviation-related projects must be located close to an airport in 14 provinces – Samut Prakan, Bangkok, Nakhon Pathom, Pathum Thani, Chachoengsao, Chon Buri, Rayong, Chiang Rai, Phitsanulok, Nakhon Sawan, Lop Buri, Nakhon Ratchasima, Surat Thani and Songkhla.
The robot super-cluster also gets the same tax-incentive level for super-clusters approved by the Cabinet last year, such as a tax exemption for the first eight years and the extension of the discount of half of corporate taxes for the next five years.
Applications must be filed by December 30.
The board approved 14 projects worth Bt39 billion, including agricultural processing projects worth Bt9.24 billion such as those from Pet Focus Co worth Bt1.3 billion, Green Spot Co worth Bt4.68 billion, Sunshine Biotech International Co worth Bt1.37 billion and Kamphaeng Phet Bio Ethanol Co worth Bt1.5 billion.
The next industries were ceramics, with Kabinburi Glass Industry Co’s Bt7.64-billion project and machinery and logistics worth Bt4.6 billion.
The rest were for super-clusters catering to government policy and the electronics, chemical and plastics, and service industries.
The BOI targets approving projects worth Bt450 billion this year.
In the first month, there were 90 new applications for tax privileges from the BOI worth Bt20.5 billion. This was up 300 per cent from only 33 projects worth Bt7.5 billion in January last year, Hiranya said.