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SATURDAY, September 30, 2023

BOI grants privileges to four mega-projects worth THB209 billion

BOI grants privileges to four mega-projects worth THB209 billion
MONDAY, June 13, 2022

The Board of Investment (BOI) on Monday approved tax privileges to four mega-projects with combined investment value of 209.478 billion baht.

BOI secretary-general Duangjai Asawachintachit said the BOI meeting, which was chaired by Prime Minister Prayut Chan-o-cha, approved a project to manufacture battery electronic vehicles (BEV) by Horizon Plus Co Ltd with investment value of 36.1 billion baht. Horizon Plus is a joint venture between PTT Plc and Foxconn Technology Group from Taiwan.

The BOI also agreed to grant investment incentives to Asia Era One Co Ltd for its high-speed train project linking the Don Mueang, Suvarnahbhumi and U-Tapao airports with an investment value of 162.318 billion baht. CP Group is the major shareholder.

She said the BOI granted tax privileges to Kingboard Holding Ltd for its 8.23-billion baht investments in a textile project and the BOI also approved an electricity co-generation project worth 2.83 billion baht of the IRPC Clean Power Co Ltd.

Duangjai said the BOI approved the investment privileges for the mega-projects as they would benefit the country and lead to further investments in infrastructure in the Eastern Economic Corridor.

The BOI also sees the BEV manufacturing project as increasing Thailand’s potential to become a base for making EVs.

Dungjai added that the BOI also agreed to increase privileges to draw more investors to EV battery-making, including the manufacture of battery cells, battery modules and high energy density batteries.

BOI grants privileges to four mega-projects worth THB209 billion Investors will get import tariff reduction for the import of materials and necessary items for the manufacturing process for five years instead of two years as approved earlier, Duangjai said.

The companies that have received a two-year tax reduction earlier can asked for extension of the privilege to five years, she added.

Currently, 10 companies have received investment privileges from the BOI for their 16 projects to make batteries for EVs with a combined investment value of 4.82 billion baht, Duangjai said. Three other high energy density battery projects with a combined value of 6.746 billion baht had also been approved by the BOI.

Duangjai said the BOI also agreed to revise criteria for granting investment privileges to investors who plan to invest in building smart industrial estates.

The revised rules would require such estates to have functions regarded as smart facilities, smart IT, smart energy, and smart economy as well as one of three functions of smart good governance, smart living and smart workforce, she said.

She said smart industrial estates can also be built in Bangkok and Samut Prakan under the revised rules.

BOI grants privileges to four mega-projects worth THB209 billion The approved smart industrial estates would be exempted from corporate taxes for eight years. And if the smart industrial estates are located in the EEC, they will get 50 per cent corporate tax reduction for five years on top of the eight-year exemption.

The BOI also agreed to offer more privileges to attract foreign investors, she said.

Foreign investors with a paid capital of 50 million baht, whose projects have been approved by the BOI, would be allowed to buy 5 rai [0.8 hectare] of land for their offices, 10 rai [1.6 hectares] of land for residences of their foreign experts and 20 rai [3.2 hectares] of land for residences for their workers, Duangjai said.

But they will be required to sell the land within a year of the expiry of the BOI privilege for their businesses.