The Thailand Board of Investment (BOI) approved incentives to encourage companies to reduce greenhouse gas emission as well as an enhanced scheme for electric vehicles and measures to mitigate Covid-19 impacts and support local vaccine development, Ms Duangjai Asawachintachit, Secretary General of the BOI, announced today.
Measures to Encourage Greenhouse Gas Reduction
The board approved a series of promotion measures to encourage investments that will reduce impact on the environment, support sustainable development, and participate to the development of the BCG model (Bio, Circular and Green economy) which the Thai government has set as a priority to lead the post-Covid 19 recovery.
These measures comprise the following:
1) The grassroots economy support scheme will also cover the support to local organizations involved in the development of sustainable agricultural activities such as low-methane rice farming. This new addition is expected to encourage competent companies in taking part in the movement towards sustainable agriculture, In addition, the deadline for applications under the grassroots economy support scheme will be extended to end 2022.
2) 3-year tax holidays will be offered to investments in machinery upgrades aimed at reducing greenhouse gas emissions. This will be an addition to the existing productivity enhancement scheme. This new measure is expected to contribute to the country’s commitments on greenhouse gas reduction.
3) 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 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.
4) 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 to support Thailand to become an EV manufacturing hub
The meeting agreed to improve the investment promotion policy for the production of electric vehicles (EV) of all types, in a move aimed to further boost the EV sector, which is one of the country’s target industries.
The investment promotion will also extend to the production of BEV platforms which consist of an energy storage system, charging module and front & rear axle module. In general, a platform represents at least 70% of the total cost of a BEV.
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