BOI approves measures to help flood-affected businesses
New measures unveiled to relieve impact from strong baht
Thailand Board of Investment (BOI) has offered new measures to help alleviate difficulties experienced by manufacturers affected by flooding and the strong baht.
Under the terms of these new measures, those affected by the floods will be granted an import duty exemption for machinery, while those affected by the strong baht will be granted various incentives, including import duty exemption for raw materials for 10 additional businesses, and a relaxing of some conditions for SMEs.
Mr. Chaiwuti Bannawat, Minister of Industry, said that the BOI?s Board meeting, chaired by Prime Minister Abhisit Ajjajiva, recently approved various measures to help BOI-promoted businesses that have been affected by the recent floods. Under the new measures, they will be granted import duty exemption when they import new machinery to replace that damaged by the floods. This measure will cover businesses in all zones across the country, including those that may be affected by flooding in the future.
The investors interested in being granted such incentives must submit their application for replacement machinery import by December 31, 2011, in case where the machinery import period for an existing project remains valid. Replacement machinery must be imported within the existing period. BOI may consider extending the machinery import period as deemed appropriate. For those projects whose machinery import period has expired, the BOI will extend the period further by two years from the date of application approval.
According to the initial assessment, in Nakhon Ratchasima province one company has been critically affected with serious damage to machinery, raw materials and finished products. In addition, nine companies could not produce goods to meet their initial schedules because transport was disrupted, affecting employees? travel. In Saraburi province, three companies reported damage to its machinery, raw materials and finished products. In Prachin Buri province, none of the BOI promoted companies has been affected while those located in Lop Buri province are under investigation.
The meeting also considered measures to help alleviate the impact from the strong baht. The measures are as follows:
Machinery replacement for efficiency upgrade will be granted three-year corporate income tax exemption for up to 70 per cent of the total investment value (excluding land and
capital). This is applicable to existing operators that run businesses that are promoted by BOI. They also have to present machinery replacement plans to increase current production capacity. The application must be submitted before 31 December 2011.
New incentives for SMEs: the BOI has relaxed it rules for the SMEs scheme by raising the investment ceiling per application from Bt 20 million to Bt 80 million baht(excluding land and revolving capital)
Incentive adjustment for existing non-BOI companies: companies in 10 businesses can apply for benefit under section 36(1) and 36(2). These benefits include exemption from import duties on raw materials imported for producing, mixing or assembling goods or products manufactured only for export and exemption of import duties on goods for re-export. The 10 businesses categories include finished clothes, leatherwear, shoes, home furniture and decorative items, textiles, toys, athletic gear, gems and jewelry, lenses and printed matters. Interested companies must apply for the incentives before December 31, 2011.
Source : BOI