The government is considering tax breaks for established firms that foster early-stage businesses through the development stages, Deputy Prime Minister Somkid Jatusripitak said on Friday.
Speaking at a seminar entitled “SET 100 Strengthening Pracha Rat Power”, Mr Somkid said at a tie of sagging economic opportunity, large well-established businesses should turn crisis into an opportunity for investment.
He suggested that instead of implementing "corporate social responsibility" projects, large corporations should look to help start-up businesses, then the government might allow them a tax break equal to double the actual expense of incubating the much smaller firm.
“We should discuss this issue by starting with four or five sectors,” said Mr Somkid, who was partly inspired by the example of the South Korean creative innovation centre assisting small businesses.
Finance Minister Apisak Tantavorawong said the ministry was studying possible tax measures for a project whereby large incubator firms would to help small businesses, so all could help achieve sustainable economic growth under the government’s Pracha Rat (People's State) initiative.
He said initially large corporations would be allowed to claim as a tax deduction double the cost incurred in fostering small firms. The ministry hoped to complete details of the proposal and present it to cabinet for approval in about a month.