EEC perk extension to go before new government

EEC perk extension to go before new government

The new government will be asked to extend the Board of Investment's promotional investment packages for the flagship Eastern Economic Corridor (EEC) scheme for another year.

Kanit Sangsubhan, secretary-general of the EEC Office, said the office will submit a proposal to extend the privilege packages, which are scheduled to expire on Dec 30, once the new government comes together.

He said the packages may need to be adjusted to make them more enticing for investors.

According to Mr Kanit, the EEC will launch intensive roadshows in the remaining five months of the year to draw investment to the corridor.

He refused to elaborate on possible new details for the packages, saying the duty falls to the Board of Investment.

The BoI on Nov 23, 2017 approved a two-year extension of investment privileges in the special promotion zones of the EEC until the end of 2019 after existing privileges expired in late 2017.

Those privileges included a corporate income tax exemption for eight years and a 50% reduction in corporate income tax for an additional five years after the tax holiday.

The board also approved an extension of the corporate income tax exemption from the existing eight years to 10 years and a 50% cut in corporate income tax for an additional five years after the tax holiday.

The new perks are offered to investors in three special zones under the EEC, while applicants for the new privileges are also required to cooperate with educational institutes, research centres or other excellence hubs on human resource development and training of employees.

The three special promotion zones are the aviation promotion zone at U-tapao airport, the Eastern Economic Corridor of Innovation and Digital Park Thailand.

The EEC Office reported yesterday that investment applications to the BoI for 12 targeted industries rose from 199.32 billion baht in 2016 to 310.33 billion baht in 2017 and 683.91 billion baht in 2018.

The agency aims to increase investment applications to the EEC by 100 billion baht in value every year over the next three years.

Mr Kanit said the EEC Office this year also plans to sign a memorandum of understanding on investment cooperation with the Japan Bank for International Cooperation, China Development Bank, the Greater Bay Area and the Zhengzhou Airport Economy Zone.

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