The Board of Investment (BoI) expects to decide next week on a plan to offer new tax incentives to help investors cope with the impact of US President Donald Trump's reciprocal tariff policy.
The plan is on the agenda for a May 19 BoI board meeting chaired by Finance Minister Pichai Chunhavajira.
"The board members will talk in detail about taxes and the value-added tax, hoping they can become tools to help investors deal with the tariff issue," said Narit Therdsteerasukdi, secretary-general of the BoI.
He did not elaborate on how the taxes will be implemented, saying only that "more discussion is needed and the government expects to launch these new measures soon".
Mr Narit was speaking during the four-day 2025 Subcon Thailand, which started on Wednesday. It is an industrial subcontracting event held to promote new business matching.
Thai entrepreneurs, especially exporters, are worried about Washington's trade policy after Trump decided to slap a 36% tariff on Thai imports, taking effect on April 9, to solve trade imbalances between the two countries.
The president later paused the enforcement for 90 days, enabling Thailand to negotiate with US authorities.
If the negotiations fail, the Thai economy could slump as exports to the US are a major contributor to the country's GDP.
Thailand's trade surplus with the US last year was the 11th-largest in the world, exceeding US$35 billion or 1.2 trillion baht.
"Thailand's automotive and electronic industries, which are large contributors to Thai GDP, would be affected by the US tariffs," Mr Pichai told participants at the event.
Trump's 25% tariff on foreign-made automobiles exported to the US took effect on April 2, while auto parts exporters face a 25% tax on engines, transmissions and other key vehicle parts from May 3, according to media reports.
Mr Pichai urged Thai manufacturers to adjust their businesses to brace for changes in the global economy.