Investment incentives soon ready for cabinet

Apisak hopes perks will kick-start projects

Finance Minister Apisak Tantivorawong is confident new measures will boost the economy and ward off external threats. Kitja Apichonrojarek

Finance Minister Apisak Tantivorawong is confident new measures will boost the economy and ward off external threats. Kitja Apichonrojarek

The incentives package for accelerating private investment will be ready to seek cabinet approval in the next two weeks, says Finance Minister Apisak Tantivorawong.

The special incentives will be offered to quick-start projects that have not applied for Board of Investment (BoI) privileges.

Incentives will be on a par with those given to BoI-promoted projects, but projects will have to start within one year of the cabinet approving the measures.

The Finance Ministry will offer the special tariff measures to investors in property, machinery, computers and vehicles.

"This is a special promotion for investors. If they're still hesitating due to sluggish economic sentiment, this will prompt them to make a decision more quickly, and hopefully they'll push the start button this year or early next," Mr Apisak said.

The BoI recently offered tax incentives to industries using high technology or promoting research and development.

They include increasing corporate income tax exemption to 13 years from eight and raising the reduction for corporate income tax to 90% for 10 years after a tax holiday from 50% for five years now.

Private investment accounts for 27% of GDP. Thailand is in dire need of fresh investment from the private sector to boost the lacklustre economy, Mr Apisak said.

The government has also sped up addressing obstacles facing foreign investors, while Prime Minister Prayut Chan-o-cha has called a ministerial meeting to discuss the issues next week.

The new incentives, coupled with privileges offered earlier, are aimed at adding liquidity to the system and boosting consumption.

Since the new economic ministerial team led by Deputy Prime Minister Somkid Jatusripitak joined the government, new stimulus packages have been announced almost each week.

They include interest-free loans of 1 million baht each for two years to 59,000 Village Funds, a 5-million-baht budget for 7,255 tambons for building and repairs and acceleration of budget disbursement for small projects worth less than 1 million baht.

A separate aid package for small businesses includes soft loans and a reduction in taxable corporate revenue, while infrastructure projects will invest 130 billion baht next year.

"I'm strongly confident these liquidity and acceleration packages can cushion the external threat and recover our economy," Mr Apisak said, adding that another measure for the industrial cluster policy would be announced soon, laying the foundation for the next 10-20 years.

Source: http://www.bangkokpost.com/business/news/744208/investment-incentives-soon-ready-for-cabinet