The Board of Investment (BoI) has approved a number of stimulus measures to spur investments in domestic projects to boost the grassroots economy.
BoI secretary-general, Duangjai Asawachintachit, said on Thursday the measures were designed to attract investments to large-scale projects with significant economic impacts from economic "actors" of all sizes -- from large corporations to community-run businesses.
Ms Duangjai announced the plan at a press briefing held after a BoI board meeting chaired by Prime Minister Prayut Chan-o-cha.
She said the measures are a follow-up to the Thailand Plus stimulus package announced by the BoI in September last year.
Companies will be exempted from paying corporate income taxes for between 5-8 years -- with a 50% corporate tax deduction for the following 5 years -- if they invest at least 500 million baht this year, for a minimum total of one billion baht by the end of next year, in approved large-scale projects in Thailand, she said.
Those wishing to have their projects approved must submit their applications before Dec 30.
The private sector will also be encouraged to invest more in improving the competitiveness of grassroots economic players, by financing activities within the agriculture, light industries, and community tourism sector.
According to Ms Duangjai, businesses currently enjoying corporate income tax exemptions can claim additional benefits if they invest in supporting the grassroots economy.
"Applications for this scheme must be submitted by end of 2021," she said.
The privilege will also be extended to qualified small and medium enterprises which do not generate more than 500 million baht in annual revenues and are at least 51% owned by Thai nationals.
Ms Duangjai added that to help the tourism sector, which has been hit hard by the novel coronavirus outbreak, the BoI has agreed to relax investment rules for hotel operators -- with added incentives for hotel owners with properties in lesser-known destinations.