THE CABINET yesterday (Aug. 25) acknowledged urgent necessary support measures to start U-Tapao Airport and Eastern Aviation City development project as approved by the Eastern Economic Corridor Policy Committee (EECPC) covering taxation, investment plus facilitating foreign entrepreneurs and personnel among others, Naewna newspaper said this morning.
Ms. Lalida Periswiwatana, deputy spokesperson for the Prime Minister’s Office, said the goal is to quickly create a favourable investment environment, attract targeted businesses and industries to the area, and push the project forward.
This is a key infrastructure project for the Eastern Economic Corridor (EEC). EECPC and U-Tapao International Aviation Co., Ltd. (UTA) signed a joint investment agreement on June 19, 2020.
“The government wants U-Tapao and the Eastern Aviation City to be a mechanism for attracting investment, tourism, high-value technology and service industries, linking the EEC development with the national economy.
“And it will create tangible employment and economic opportunities in the area in the long term,” Lalida said.
Aside from measures on taxation, investment plus facilitating foreign entrepreneurs and personnel, others focus on infrastructure development and economic activities.
One important measure is allowing entrepreneurs to deduct double the amount of capital expenditure (CAPEX) and operating expenses (OPEX) when calculating corporate income tax. It also opens the door for consideration of additional measures for entrepreneurs who promote highly skilled labour, modern technology, clean energy, knowledge or technology transfer, or invest in high-value assets in special target industries.
In addition, there are measures allowing foreigners to reside, work, or conduct business in the Eastern Economic Corridor Special Economic Zone, special temporary residence visas (EECa Visa), and a reduction in corporate income tax rates for international transport businesses, specifically air transport, for a period of five years at a time, with an evaluation of effectiveness and cost-effectiveness before considering renewal.
At the same time, there are guidelines for reducing registration fees for leasing and transferring real estate. The committee also studied the feasibility of developing a cruise ship terminal, yacht marina, feeder systems, and expanding the Eastern Economic Corridor (EEC) Aviation City Special Economic Zone to systematically connect the airport with surrounding tourism, travel, and investment activities.
EEC also approved adjustments to some measures to align with legal requirements, such as exempting taxes on goods and services for consumption and business operations within the Free Trade Zone, as well as guidelines for the import, maintenance, and storage of racing cars, classic cars, and privately collected vehicles. The EEC Office and related agencies were tasked with expediting the enactment of legislation and establishing appropriate control measures to ensure the approved measures are implemented by September 30, 2026.
“This initiative is more than simply advancing the airport project; it’s about creating real economic activity around the Aviation City. The EEC Office estimates that it will stimulate 1.3 trillion baht in private sector investment throughout the project’s lifespan, create 63,701 jobs, attract 400,000 foreign tourists annually, and increase local spending by 20 billion baht upon commencement of operations.
“It will generate over 37 billion baht in GDP in its first year of operation and is expected to continue growing,” Lalida said.
CAPTION:
U-Tapao International Airport signage. Above photo – Naewna, Front Page – PPTVHD36
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