Tax cuts, investment promotion proposed for Thai southern provinces

The Thai government plans to reduce taxes on both personal income and corporate tax, as well as insurance fee for entrepreneurs in five southern provinces, the state-run news agency Monday announced.

Thai Deputy Prime Minister and Finance Minister Pridiyathorn Devakula announced the future preferential policies for southern provinces after a Monday meeting entitled "A Special Economic Zone in Southern Thailand."

The main purpose of the meeting was to find out measures to materialize the government's plan to set up a special development zone in the country's five southern border provinces: Yala, Narathiwat, Pattani, Songkhla and Satun, the Thai News Agency said.

Pridiyathorn said that the government is considering reducing corporate tax from 30 percent to 25 percent. Tax incentives will also be extended to cover personal income. He will hold talks with Deputy Prime Minister and Industry Minister Kosit Panpiemras about the possibility for the Board of Investment under the supervision of the Industry Minister to come with other forms of incentive to promote more investment in the violence-plagued region.

Other incentives may include insurance fee reductions and permission for foreign laborers to work in some areas in the restive provinces.

Details of the plan will be submitted for Cabinet approval on Dec. 6.

The interim government expressed hope that the project will serve as a measure to help solve the problem of violence in this border region, the report said.

More than 1,700 people have been killed since the violence reemerged in the three southernmost provinces of Thailand in January 2004. Since being appointed as Prime Minister after the Sept. 19 coup, Gen. Surayud Chulanont has listed the violence in the south as one of his top priorities. He has been promoting reconciliation and apologized for the previous government's mistreatment to the people in the South.

Source: Xinhua