BoI approves Bt128 bn in tax incentives for big projects

BoI secretary-general Hirunya Suchinai said after the board meeting that the five projects include Triumph Motorcycles (Thailand)'s plan to produce motorcycles with an engine capacity of at least 500cc, involving investment of Bt3.359 billion. The plant, which will have an annual capacity of 120,000 units, will be in the Amata City Industrial Estate in Chon Buri. The project will use local raw materials worth Bt3.708 billion a year. 

For Toyota Motor Thailand, its planned investment in HEVs will enable annual production capacity of 70,000 units and for HEV batteries, annual production capacity of 70,000 units. It will also produce auto parts such as doors, bumpers, and front and rear axles with combined annual production capacity of 9.1 million units. The total investment is Bt19.016 billion.

The Toyota project will be located in the Gateway City Industrial Estate in Chachoengsao province. As part of the project, it will use local parts worth Bt13.314 billion a year. Hirunya added that the company would start production of HEVs next year.
The third project will see Bangkok Expressway and Metro Plc invest Bt22.036 billion to extend the Blue Line mass transit route from Hua Lampong to Bang Khae and from Bang Sue to Tha Phra. 

For the fourth project, Northern Bangkok Monorail will invest Bt46.064 billion on the Khae Rai-Min Buri section of the Pink Line mass transit route.

Lastly, Eastern Bangkok Monorail will spend Bt43.404 billion on the Lat Phrao-Samrong section of the Yellow Line mass transit route.
Among the tax-support measures for the three mass-transit projects, the BOI will waive import duties on equipment such as trains and signalling systems.

Northern Bangkok Monorail and Eastern Bangkok Monorail are joint ventures of BSR Joint Venture. The latter consists of BTS Group Holdings Plc, Sino-Thai Engineering and Construction Plc and Ratchaburi Electricity Generating Holding Plc. It won Cabinet approval in May to operate the Pink Line and Yellow Line projects.
The BoI is targeting applications for investment projects valued at Bt600 billion this year. Applications for investments totalling Bt291.79 billion on 612 projects have been received in the first half of this year.
Of the total investment applications lodged in the first half, 302 projects worth Bt133.494 billion were proposed by applicants planning to invest in the government’s 10 target industries. These industries – promoted under the government’s Thailand 4.0 technology policy - range from smart automotive capabilities to robotics and other digital sectors.
In the first half of this year, applications to invest in the Eastern Economic Corridor (EEC) totalled 150 projects worth Bt87.43 billion, accounting for 30 per cent of the total investment applications in the six months.
The BoI is targeting Bt150 billion in investment applications for EEC projects this year.
For the first half, the BoI has approved investment of more than Bt340 billion, which will create more than 33,000 jobs and lead to export income of Bt200 billion a year.

On foreign direct investment, the BoI received 372 application for projects worth Bt141.065 billion in the first half. Japanese investors topped the list with applications for 117 projects worth Bt65.435 billion.
Hirunya said Prime Minister Prayut Chan-o-cha, who chaired the BoI meeting, yesterday asked BoI to seek ways to give greater support to tourism and agriculture in order to help boost the incomes of those engaged in these sectors.

The premier also wanted to see private companies joining forces to propose joint investment in projects, adding that government agencies will explore ways to support such ventures.