A corporate income tax cut for the entertainment sector could benefit the industry, while bolstering Thailand's soft power promotion efforts, according to the country's largest music company.
Phawit Chitrakorn, chief executive of GMM Music Plc, said the Thai entertainment industry operates on relatively thin profit margins, averaging around 10%.
He said if the film, TV and music sectors collectively generate an annual revenue of 50 billion baht, this translates to a profit of about 5 billion.
With a corporate income tax rate of 20%, exempting this tax would mean a minimal revenue loss of roughly 1 billion baht for the government, said Mr Phawit.
"To nurture the industry and achieve the country's soft power goal, the government should consider tax exemptions for the entertainment sector. We could use the investment promotion criteria from the Board of Investment," he said.
Mr Phawit said tax exemptions would enable entertainment companies to increase their income and reinvest those funds back into their operations.
As vice-chairman of the National Soft Power Development Subcommittee for Music, he said the panel has been in discussions with government agencies about potential tax exemptions.
Mr Phawit said to successfully advance Thai soft power on the global stage, local cultural products must first be popular among Thai consumers.
"Engaging all stakeholders is crucial. We need to attract international audiences to appreciate our soft power within Thailand, not just rely on generating income from soft power exports," he said.
Referencing South Korea's success, Mr Phawit said Korean stakeholders initially focused on promoting their cultural products domestically before extending their efforts to neighbouring countries, which helped Korean culture gain international recognition.
"To develop the country's soft power, we first need to empower the teams working behind the scenes," he said.
Mr Phawit predicted a growth rate of 7-10% for the Thai music industry this year, fuelled by rising revenues from digital channels, concert organisation and artist management.