12,000 rai added for SEZ second-phase development

12,000 rai added for SEZ second-phase development

Thailand, Laos and Myanmar are seeing improved trade after the freer flow of goods and services under the Asean Economic Community. (Bangkok Post file photo)
Thailand, Laos and Myanmar are seeing improved trade after the freer flow of goods and services under the Asean Economic Community. (Bangkok Post file photo)

More than 12,000 rai of state-owned land in three border provinces will be added to the second phase of special economic zone (SEZ) development.

Porametee Vimolsiri, secretary-general of the National Economic and Social Development Board, said the total land approved this time totalled 12,105 rai in three provinces: Nakhon Phanom, Chiang Rai and Kanchanaburi.

The government will need to invoke Section 44 of the interim charter to revoke the public land use status of 3,912 rai in Nakhon Phanom and Chiang Rai while another 8,193 rai in Kanchanaburi, owned by the military, could be transferred to the Treasury Department.

There are another 2,277 rai of land in Narathiwat that is suitable for industrial development, so the Industrial Estate Authority of Thailand was assigned to purchase the land from owners.

The decisions were reached at a meeting of the committee supervising SEZ policy on Monday.

Mr Porametee said the committee also approved the reduction of annual land lease fees by 50% to between 16,000 and 300,000 baht per rai. Payments could be made once in the sixth year or paid in instalments in the sixth through tenth years of the lease.

However, the annual lease fee for land in Tak, Mukdahan, Trat, Sa Kaeo, Songkhla and Nong Khai will be between 24,000 and 40,000 baht per rai, with an increase of 15% every five years.

He said investors had already applied for investment privileges from the Board of Investment for 400 million baht in SEZ projects. Manufacturers included those making garments and industrial parts.

Some companies that did not receive BoI privileges obtained incentives from the Finance Ministry to their their corporate income tax rate reduced to 10% for 10 years.

The SEZs are being developed to promote investment in border provinces. First-phase development is planned for Trat, Sa Kaeo, Nong Khai, Songkhla, Mukdahan and Tak. The second phase is slated to start construction in 2018 in Kanchanaburi, Narathiwat and Chiang Rai.

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