Special measures have been taken by the Board of Investment in Thailand to promote investment in rail and rail-related industry. Such is done to top 10,000 trains in the next 20 years. Prayut Chan-o-cha, the Prime Minister, said that this is the right time to promote the rail sector, as demand for trains has reached a decent economy of scale to set-up a train manufacturing in the country.
Similarly, the government plans to increase Thai competitiveness in the rail industry in order to reduce train imports. In the next 10 years, plans call for building a 6,000km network with electric and high-speed rail, and double-track.
Well, these special measures will be offered to manufacture train cars with domestic engineering designs and will be entitled to a corporate income tax exemption for at least 8 years. Also, for making significant parts of the operator’s cab, couplers, power supply, and rails, and signaling and braking systems.
If you are interested in investing in the railway industry of Thailand you must submit the applications to the BOI by December 30th, 2021, which will grant a 50% reduction in corporate income tax (CIT) for 3 to 5 years.
Khon Kaen and Nakhon Ratchasima are though steel and metal parts manufacturing bases in the Northeast, they have the potential to be developed into the rail industry. For the development of the smart city at the State Railway of Thailand’s central station in Bang Sue district, the board approved principle offering privileges.
Also, the board yesterday agreed to better the policy to promote the tourism sector. The investment scale eligible for privileges has been capped to 30 million baht from 100 million. For the same, the board has introduced two new categories in order to enjoy promotional privileges; large-scale man-made tourism spots, and cruise terminals to support marine tourism.
