Tax breaks for plants that cut pollution
The Board of Investment (BoI) yesterday approved tax in-centives to industrial plants which embark on environ-mental protection as a way of encouraging investment to reduce pollution.
It also plans to renew its investment privileges to confectionery manufacturing in line with growing global demand. The board also approved yesterday the formation of subcommittees to formulate strategies to boost Thai investment overseas, chiefly in China, India, Indonesia and the Philippines. On pollution reduction, the BoI estimates that each Thai factory will spend between Bt100 million and Bt2 billion on environment protection, depending on the nature of their business. The investors will be waived from tariffs for machinery and equipment imports for this purpose. They can also deduct 70 per cent of the expenses from corporate taxes. Moreover, the BoI will propose to the Finance Ministry that these companies enjoy tax deductions of an amount equivalent to two times their investment in environmental protection. The BoI will work out the environmental standards which the companies have to achieve with the Office of Natural Resources and Environmental Policy and Planning, the Department of Industrial Works, the Pollution Control Department and the Industrial Estate Authority of Thailand. Factories that apply for the incentives must show that their waste manage- ment has complied with the environment-protection standards of the relevant authorities. Moreover, they have to apply for the incentives within the next year and complete the environment-improvement projects by 2010. Meanwhile, Deputy Prime Minister and Industry Minister Kosit Panpiemras said after chairing the meeting that the Finance Ministry expected to finalise the excise tax for the small eco-car project in two weeks. "After the Finance Ministry finalises the excise tax, the eco-car project will be forwarded 45 days later for the Cabinet's approval," Kosit said. He said that under the schedule investment plans would materialise in nine months as planned. Six auto companies have expressed their intention to invest in the eco-car project. While the BoI is drafting proposed privileges for the investment, the Finance Ministry has been tasked to come up with a new excise tax to make the investment attractive.
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