BOI-approved projects reach Bt1 trillion in value

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BOI-approved projects reach Bt1 trillion in value
Erich Parpart
The Nation

BANGKOK: -- THE BOARD of Investment yesterday expressed satisfaction that projects seeking its privileges reached Bt1 trillion in value as of December 19, cleanly beating its target of Bt800 billion for the whole year.

The value of the 1,569 projects that were approved by the BOI since the beginning of the year amounts to Bt700 billion, equal to the target for approved projects.

The BOI expects the value of applications to hit Bt1.3 trillion by year-end.

At its meeting yesterday, the agency approved 13 projects worth Bt21.15 billion, mostly alternative-energy businesses, electricity generation from waste, biomass-energy businesses, and Mazda's increased investment in the second phase of the eco-car scheme.

"The number of approved BOI projects is quite high and is enough to support economic expansion," said Hiranya Sujinai, acting secretary-general of the agency.

Japan is still No 1 among foreign investors applying for tax breaks, followed by the United States and the European Union. The number of US and EU approved projects has continued to climb in recent years.

The BOI is aiming for at least 30 per cent of approved projects next year to be businesses prioritised under its new seven-year investment strategy as beneficial to industry and the country's economic development.

The strategy promotes high-tech, creative and service industries that support the development of the "digital economy", and industries that use local resources.

Prime Minister General Prayut Chan-o-cha has said that at least one of the new special economic zones will open next year. The most likely location would be Tak's Mae Sot district, since it is best prepared.

The board is also promoting the creation of a distribution centre in the SEZs to position Thailand as an inland container depot for neighbouring countries' products.

"That would encourage other trade and economic activities in the areas but the remaining issues to discuss right now are how to make these SEZs into a truly free zones in terms of taxes," Hiranya said.

The government and the Finance Ministry will have to amend tax regulations while the BOI will help support them by inviting and persuading companies to invest in the distribution centre.

Tax privileges are not the main incentives but the ease of doing business in the SEZs such as in financial transactions, warehousing, logistics and facilities.

The BOi's new policy will offer an additional three-year exemption of corporate income tax, starting next year, to investment projects located in five SEZs - Tak, Trat, Sa Kaew, Songkhla and Mukdahan.

Source: http://www.nationmultimedia.com/business/BOI-approved-projects-reach-Bt1-trillion-in-value-30250686.html


-- The Nation 2014-12-26

[rickirs]

"Tax privileges are not the main incentives" but the government will offer an additional three-year exemption of corporate income tax. Nice little priviledge.

[marcusd]

Approved is NOT COMMENCED. And many of these APPROVALS have been sitting waiting for near on 2 years.

I wonder how many will actually come to fruition?

I do know personally of many that have been approved and moved ELSEWHERE due to even better incentives such as the stupid reporting conditions for foreigners being one and salaries being more competitive elsewhere for another