Govt cuts SEZ lease-management fees by 50%

Govt cuts SEZ lease-management fees by 50%

Cambodian traders push a cart at the border checkpoint at Khlong Luek as they head for Sa Kaeo’s Rong Kluea Market. The market area is to be developed as a special economic zone. (Bangkok Post file photo)
Cambodian traders push a cart at the border checkpoint at Khlong Luek as they head for Sa Kaeo’s Rong Kluea Market. The market area is to be developed as a special economic zone. (Bangkok Post file photo)

The cabinet has approved a 50% cut in the one-time lease-management fee for land in six special economic zones in an effort to attract investors.

Government spokesperson Sansern Kaewkamnerd said the 50% discount will be achieved by waving annual instalment payments during the first five years of a company's operation. The remaining balance will then be paid off in equal portions during the sixth through tenth years.

Annual lease prices for land in SEZs in Sa Kaeo, Trat, Tak, Mukdahan, Songkhla and Nong Khai provinces will remain as approved earlier and increase 15% every five years.

The lease management fee for Songkhla was cut in half to 300,000 baht per rai while the annual lease payment per rai will be 40,000 baht for private businesses and 28,000 baht for the Industrial Estate Authority of Thailand.

For Tak, the one-time fee will be 250,000 baht per rai and annual lease per rai of 36,000 baht for businesses and 25,200 baht for the IEAT.

The respective rates for Sa Kaeo will be 225,000 baht, 32,000 baht and 22,400 baht for the IEAT.

For the remaining three provinces, the rates will be 160,000 baht, 24,000 baht and 16,800.

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