The Thai government is expected to offer tax breaks to manufacturers directly affected by the floods in October and November of this year.
Dozens of automotive component plants were inundated by the worst flooding to affect Thailand for more than 50 years. Honda’s vehicle manufacturing hub in Ayutthaya province was also swamped in October, putting it out of action for around six months. Other key industries affected include the electronics and home appliance industries.
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Industry minister Wannarat Channukul said the Thai Board of Investment (BoI) will “certainly offer corporate income tax exemptions” to flood-hit manufacturers. The BoI will meet before the end of the year to discuss the measures.
So far, the BoI approved the suspension of import tax on vehicles, parts and machinery until mid-2012, to ensure industry can recover rapidly from the disaster. The new tax breaks also are expected to be implemented swiftly.
Khun Wannarat confirmed that so far the industrial estates of Rojana, Saharat Nakhon, Bang Pa In, Bang Wa (Hi-Tech), Nava Nakhon, Factory Land industrial zones and Bang Kadi have been drained of flood waters.
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