Thailand’s Minister of Finance, Mr. Arkhom Termpittayapaisith, announced that the Cabinet has resolved to extend tax measures to promote the use of biodegradable plastic products. This program aims at supporting entrepreneurs to reduce the use of non-biodegradable plastics, with the expectation that the use of biodegradable plastics will increase by 10% (68,978 tons). The total amount of biodegradable plastics currently being produced for packaging amounts to 689,785 tons; therefore, through the extension of this eco-friendly policy, Thailand is poised to achieve its goal of becoming ASEAN’s Bio Hub.
The Director-General of the Revenue Department (RD), Mr. Ekniti Nitithanpraphas, added that the Ministry of Finance has stressed the importance to support entrepreneurs to switch to biodegradable plastic products; thus, the RD proposed a draft royal decree issued under the Revenue Code on tax exemption (No. …) B.E. …. (Extension of Tax Measures to Promote the Use of Biodegradable Plastic Products), which entitles limited liability companies and juristic partnerships to tax deductions calculated as 125% of the total expenditures incurred from purchasing biodegradable plastic products. The eligibility criteria and application process will be specified in forthcoming ancillary regulations.
The expenditure must be sustained between 1 January 2022 and 31 December 2024, and paid in accordance with rules, procedures, terms and conditions outlined in the announcement of the Director-General of the Revenue Department, which will come into force on the first day following the date of publication in the Government Gazette.
The Director-General of the RD concluded that the extension of these tax measures to promote the use of biodegradable plastic products, which previously expired on 31 December 2021, will help promote the regular use of such products, leading to more sustainable and cost-efficient business models.