The government is preparing a number of tax incentives to promote a low-carbon economy and encourage investment in environmentally friendly businesses, Finance Minister Pichai Chunhavajira says.
He made the remarks at the Bangkok Post Conference 2024 “Greening the Future: ESG Leadership in the Sustainability Revolution” at Centara Grand at CentralWorld on Thursday.
Currently, he said, the Ministry of Finance has measures to promote carbon credit transactions through the exemption of corporate income tax on net profits on the sale of carbon credits under the Thailand Voluntary Emission Reduction programme.
Other measures include promoting investment in the Thai ESG (environmental, social and governance) Fund, and a low excise tax for vehicles that emit less carbon dioxide, he said.
Key speakers pose for a group photo at the Bangkok Post Conference 2024. (Photo: Pattarapong Chatpattarasill)
The ministry is now considering further tax incentives in three stages, Mr Pichai added.
For short-term measures, the government will promote the use of alternative energy and the reduction of energy consumption by allowing tax deductions from the purchase and installation of solar cells. Expenses incurred in improving energy efficiency will also be deductible. As well, the government is promoting investment in research and development of climate technology.
Medium-term measures will include promoting low-carbon activities and building an ecosystem to reduce greenhouse gases. This would include tax incentives for businesses to calculate their carbon footprints so that they can more efficiently plan to reduce greenhouse gases.
“Private companies will also be offered tax incentives to register carbon credits in various industries to boost supplies and liquidity in the carbon credit market,” Mr Pichai said.
In the long term, the ministry will push for a carbon tax for excessive greenhouse gas emissions in order to achieve the goals set by the Paris Agreement to curb climate change, he said.
These measures — and the support of businesses that act in line with ESG principles — will help Thailand become a leader in sustainable development, attract investment and create a sustainable and fair economy that will upgrade the quality of life of Thais, he said.
Key speakers and sponsors gather at the Bangkok Post Conference 2024 at Centara Grand at CentralWorld. (Photo: Pattarapong Chatpattarasill)
Mr Pichai said Thailand attached great importance to sustainable development based on ESG principles.
Even though the country is not among the world’s major carbon dioxide emitters, Thailand was ranked in 2021 as the ninth most affected country in terms of human impacts and direct economic losses from weather-related loss events from 2000 to 2019, he said.
In light of this, the ministry is duty-bound to devise measures to respond to climate change and related economic problems while striving for sustainable development, he said.
Mr Pichai also urged the private sector, the civil sector and the government to prioritise ESG factors to build a better and more secure future for the country and the world, as the environment and climate change are globally important issues.
Studies from several organisations show that climate change will have a negative impact on the economy in the future, he added.
We would like to extend our gratitude to our sponsors for their generous support of the Bangkok Post ESG Conference 2024.
