Thailand cuts taxes to lure investment in masks and pharma

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Thailand cuts taxes to lure investment in masks and pharma

Incentives to meet virus-driven shortages also further Bangkok's long-term aims

MARIMI KISHIMOTO, Nikkei staff writer

 

The coronavirus pandemic has sent demand for face masks soaring in Thailand.   © Reuters

 

BANGKOK -- Thailand will deploy targeted tax cuts to encourage investment in face masks and other crucial items that are in short supply due to the coronavirus outbreak, the country's Board of Investment said on Monday.

 

A 50% corporate income tax cut lasting three years will be available for projects that involve the manufacturing of medical devices, diagnostic test kits, pharmaceuticals or mask materials.

 

The reduction covers projects applying for governmental approval during the first half of 2020, and which start production by year-end. The cuts apply in addition to the existing three- to eight-year tax exemption.

 

Full story: https://asia.nikkei.com/Business/Health-Care/Thailand-cuts-taxes-to-lure-investment-in-masks-and-pharma

 

-- NIKKEI ASIEN 2020 04-14

[Phuketshrew]

And I wonder which company and person will benefit most from this?

[marko kok prong]

Ah,the old 'luring' trick is back.

[rkidlad]

Well, Thai government, you’re going to have to think very carefully about your relationship with China in the future. If you continue trying to get closer to them, you will begin to alienate yourselves. You’ll need Foreign investors, and they will be more reluctant to invest in a country that seeks closer ties to the CCP. They may not even be reluctant. They may be restricted from doing so by their respective governments. 
 

Japan is one of your top investors and their government is making moves to help their companies pull out of China. 
 

 

Edited April 14, 2020 by rkidlad

[DrTuner]

Better be a big lure to offset the corona scare. As in paying companies to come to Thailand.

[Surelynot]

It will be all over and done with by the time someone gets set up.