THAI FLOODS: Supplier machine tax incentives to be announced shortly
Thailand is to reveal details of tax incentives shortly for auto suppliers that continue to be severely affected by the country's massive floods with many not able to fully restart until the beginning of next year.
A reliable source near Bangkok told just-auto today (3 November) that water in the Thai capital was rising and receding in different areas with some government offices expecting more flooding leading to staff having to find alternative sites for work.
"Suppliers right now are just trying to recover factories - they are planning how many machines they need to replace," the source said. "Many companies expect to start operations at the beginning of next year.
"We are about to launch special measurement to assist the flooded parts - it will be announced by next week. That will include auto suppliers who have been affected."
Help for suppliers in sectors such as body parts, stamping, suspension parts and aluminium wheels, could see tax incentives on machine import duty and low interest rates made available. "That is better than the normal package they would receive," said the source.
Thai Prime Minister Yingluck Shinawatra said she would join the upcoming Asia-Pacific Economic Cooperation (APEC) summit, to be hosted by the US in Hawaii from 12-13 November, where she would outline the flooding situation in Thailand and the country's recovery plan, particularly for foreign investors.
A report from the Emergency Operation Centre for Flood, Storms, and Landslide on 2 November showed 26 provinces were still suffering from floods and 427 people have died. The Cabinet on 1 November was told the flooding situation eased in 37 provinces.
However, Bangkok, Nonthaburi, Pathum Thani, Nakhon Pathom, and Samut Sakhon are facing severe floods in many areas.