Thailand aims to become biological centre of ASEAN

Illustrative photo (Source: AFP/VNA)

Bangkok (VNA) - The Thai cabinet has approved an extension of a 25 percent corporate tax exemption for bio-plastic companies in order to promote Thailand as a biological hub of the Association of Southeast Asia Nations (ASEAN).

The measure was first implemented on January 1, 2019, and expired on December  31 last year. It was put in place to support private companies to purchase bio-plastic products from Thai producers and promote bio-plastic production in Thailand.

In 2020, there were 14 companies eligible for the tax exemption worth 18.3 million baht (544,000 USD).

Deputy government spokeswoman Rachada Dhnadirek said the measure does not only reduce tax for companies engaged in the bio-plastic industry but also supports the government's policy to promote a bio-circular and green (BCG) economy.

Early last year, the Thai Government approved the Strategic Plan for the development of the BCG economy for the 2021-2026 period to boost the country's economic growth over the next five years.

The national development strategy based on this BCG model includes four areas namely agriculture and food; health care and medical services; energy and biochemistry; and tourism and the creative economy. The BCG Committee has established seven subcommittees to work on promoting development, improving regulations, and attracting real investment./.