More special perks mulled for quick investment

The government is considering special privileges for investment projects that seek Board of Investment (BoI) privileges and invest within six months, in a bid to rev up private investment.

Deputy Prime Minister Somkid Jatusripitak said the extra privileges were aimed at boosting private investment between October this year and March next year.

“The BoI has already proposed the new measures to boost investment within six months, while the Finance Ministry is studying measures to attract even more private investment,” he said. “Those measures will be proposed to Prime Minister Prayut Chan-o-cha soon.”

The Finance Ministry recently set up a committee tasked with finding measures to attract more private investment.

The government wanted to see new private investment in the next couple of years to ward off the effect from tepid exports, so it planned to offer additional tax incentives to investors who kick off their investments in Thailand during the period. The new incentives will be separate from those already offered by the BoI. Private investment accounts for 27% of GDP in the country.

On Sept 15 the cabinet approved the BoI’s additional tax incentives for targeted industries such as those using high technology or promoting research and development. The privileges include increasing the 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.

Mr Somkid said the BoI was also assigned to study new measures to promote tourism in the provinces and raise the quality of tourism there. He said local tourism is handled by tambon administration and provincial administration organisations, but the Tourism Authority of Thailand handles marketing and focuses mainly on foreign visitors and certain provinces.

Since he took office in late August, Mr Somkid’s team of economic ministers have unveiled a host of stimulus measures to quickly pump fresh money into the hands of low-income earners in rural areas and small and medium-sized enterprises, those most at risk. He is stepping up the domestic-driven model as exports, which make up 70% of GDP, shrink amid the uneven global economy.