Ms. Duangjai Asawachintachit, Secretary-General of the Thailand Board of Investment (BOI), announced that the board approved incentives to encourage companies to reduce greenhouse gas emissions as well as an enhanced scheme for electric vehicles and measures to mitigate COVID-19 impacts to support local vaccine development.
The measures aim to reduce the impact on the environment, support sustainable deployment, and further develop the BCG model (Bio, Circular, and Green economy) which the Thai government has set as a priority to lead the post-COVID-19 recovery.
The measures comprise the following
- The deadline for applications under the grassroots economy support scheme will be extended to, and will additionally support local organizations involved in sustainable agricultural activities such as low-methane rice farming. This is expected to encourage competent companies to transform their activities to be more sustainable.
- Investments in machinery upgrades aimed at reducing greenhouse gas emissions will receive 3-year tax exemptions, encouraging commitment to greenhouse gas reduction.
- Adjustments to the conditions and benefits applying to some business categories to encourage eco-friendly technologies.
- Investments in cold storage facilities and cold storage transport operations using natural refrigerants, that reduce the impact on the environment, will be granted 3-year corporate income tax exemptions.
- Petrochemical production facilities implementing Carbon Capture Utilization and Storage (CCUS) technologies will be granted 8-year corporate income tax exemptions.
- Introduction of a new promotion category for natural gas separation plants which if they are implementing CCUS technologies will be granted 8-year corporate income tax exemptions.
Measures supporting Thailand to become an EV manufacturing hub
Thailand is targeting the electric vehicle (EV) sector, aiming to boost the industry to situate the country in a leading position. The BOI agreed to improve the investment promotion policy for all types of EVs, while also extending it to the production of battery electric vehicle (BEV) platforms, which represent at least 70% of the total cost of a BEV. The sharing platform concept is a new trend in the automotive industry, which provides more flexibility, shorter time for product development, and economies of scale.
The Board also approved the promotion of electric bicycles (E-bikes). The tax incentives include a minimum of 3 years of corporate income tax exemption.
Further COVID Impact Mitigation Measures
The Board agreed to extend the deadlines for companies required to be certified by international standards such as ISO 9002 or CMMI to 6 months during the period of April 1 – December 31, 2021. In the same period, companies can also apply for waivers for temporary cessations of operations for a period of more than two months.
Companies that provide financial support to vaccine or medicine research and development projects run by public educational institutions and research institutes, as well as government agencies may apply for tax incentives.
The board also approved Glow Energy PCL application to invest approximately 6 Billion Baht in a cogeneration power plant to expand its production of electricity and steam. The new plant, located in the Map Ta Phut Industrial Estate area, in Rayong Province, will have a power generation capacity of approximately 200 megawatts and will produce 460 tons of steam per hour.