A farmer harvests rice in Nakhon Pathom province of Thailand (Photo: AFP/VNA)

Bangkok (VNA) – The Board of Investment of Thailand has approved the granting of special promotional privileges for investment in projects related to modern agricultural production and services with a view to upgrading the country’s farm sector.

The privileges will be offered to businesses that apply tech, particularly for information technology or engineering design, to help modernise production in the traditional farm sector.

Farmers who upgrade their production methods and crop quality to achieve sought-after international quality standards, such as Good Agricultural Practice and ISO 22000 Food Safety Management Systems Certification, will qualify for the incentives.

Under the new privilege structure, businesses that apply technology to help modernise production in the traditional farm sector will be entitled to a corporate income tax exemption for five years.

Those who upgrade their production and their products to achieve international quality standards will be allowed to enjoy a corporate income tax exemption for three years. The tax incentive, however, will be limited to 50 percent of the investment cost for the standard upgrade.

Applicants for the above two categories are required to submit their applications by 2020.

Tax incentives are also being offered for investment in machinery and automated equipment.

The BOI also approved an extension for three years to 2020 for investors who improve their machinery in order to save energy or promote the use of renewable energy. The existing measure will expire in 2017.-VNA