Thursday, August 13, 2020

Economic ministers back proposed ‘Thailand Plus’ stimuli

Sep 06. 2019
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The council of economic ministers on Friday (September 6) endorsed packages proposed by the Board of Investment (BoI) to stimulate economic growth and attract more foreign investment.

Council secretary Kobsak Pootrakool said the “Thailand Plus” packages would seek to encourage foreign investors seeking to relocate production bases to Thailand amid international trade wars.

Kobsak noted that foreign direct investment in Thailand dropped from US$15 billion in 2013 to $1.04 billion last year.

The BoI proposes to halve corporate income tax for five years on projects undertaken anywhere in Thailand that bring in at least Bt1 billion in 2021, with applications required by next year.

The prime minister would establish and chair an investment steering panel to help investors overcome any obstacles as a one-stop service.

The BoI would be authorised to approve foreign investments on projects where no tax credit is sought, regardless of the business’ size, a move aimed at quickly meeting the needs of companies wishing to relocate to Thailand.

Fiscal measures would be in place allowing foreign companies tax deductions for training personnel in advanced technology this year and next.

To promote the ease of doing business, the Commerce Ministry would revise legislation deemed obstructive to investment from targeted businesses. The BoI and other state agencies would speed data integration for added convenience in the investment process. 

And rules governing visas and work permits for foreign skilled workforces would be revised.

The council also asked the Commerce Ministry to determine before year’s end whether Thailand should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The Finance Ministry would meanwhile introduce additional measures allowing companies that invest in automated systems to deduct more expenses this year and next.

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