Thailand Promotion Investment Committee proposes to amend machinery import tax reduction policy

In order to increase the ratio of companies using local production resources and slow down the trade deficit, the Thai Investment Promotion Board plans to revise the current import and export tax exemption policies for machinery and raw materials that encourage foreign investment.

According to the current investment incentive policy of the Thailand Promotion and Investment Commission, the investment in machinery and raw materials import tax of the first (Central, a total of 6) and the second district (a total of 12) with higher development level can be halved. In the case of investment in the third district (about 60 provinces) with insufficient development level, the import tax on machinery and raw materials can be fully exempted to enhance the local equipment level and competitiveness.

Some Thai entrepreneurs suggested that the Thai Investment Committee should follow South Korea's investment incentive policy, which lists mechanical and raw materials projects that are not available locally, and then only cuts taxes on new technologies that are not available locally.

At present, some of the export-oriented plans promoted by the Investment Committee are only given to the processing industry with limited added value, but a large amount of imported resources are used. Statistics from the Thai Customs show that Thailand’s exports of electronic and electrical products reached 1.03 trillion baht last year (about US$41.02), but the amount of imported raw materials in the sector was as high as 767.29 billion baht. Although the amendments to the investment incentive policy will affect the sensitive nerves of foreign-funded enterprises, especially Japanese companies that prefer to use home-based equipment, they are expected to have limited impact on Thailand's economic growth under the 8-year income tax-free incentive policy.
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From: Xinhua News Agency

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