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The ministry has suggested two possible options; companies can claim a 7-per-cent VAT refund on expenses such as import duties on equipment.

Also, companies that set up a temporary office in Thailand while making a film can also ask for tax breaks.

Ministry permanent secretary, Sasitara Pichaicharnnarong, said the OTD would release the results of its study this week. This would then be developed into a two-year measure for consideration by the ministry and put forward to the Cabinet.

Earlier, the private sector called on the ministry international studios will pay 7 per cent vat for major expenses such as equipment of film production. They can file tax return from the Thai government following to the tax privilege measure.

Earlier, the local movie production industry called on the ministry to provide more incentives to overseas film production houses to encourage them to make more films in Thailand.

It suggested measures such as tax refund on film-making equipment.

The private sector estimated that their proposed tax measures, if they come into being, could boost the country's revenue from foreign-film production by 20 per cent from Bt2 billion last year. Revenues were forecast to jump by up to Bt5 billion if spending by employees of foreign-film producers on shopping and living expenses were included.

However, no international studios have expressed their intention to shoot films in Thailand at the moment due to concerns of political unrest, which prompt the country's revenue loss from the arena.

Sasitara said that offering tax privileges to encourage foreign film houses to come to Thailand would not only help boost confidence in Thailand, but would also help promote tourism in the country.