On Tuesday, the cabinet allocated 1,032 rai of land in the Eastern Airport Cty (EECa) project to create a free-trade zone within the Eastern Economic Corridor (EEC).
After the weekly cabinet meeting, Prime Minister Prayut Chan-o-cha said Airport City’s free trade zone would not be restricted by strict laws or regulations and would come with customs duty waivers and other import measures. The move intends to increase investors’ and businessmen’s interest in Thailand.
The Airport City project is located in the 6,500 rai aviation economic zone in an area approved by the cabinet in March. ECC created seven zones authorized by Thai authorities to strengthen investment competitiveness in the country.
It would include places for leisure and activity to support services available 24/7, Gen Prayut said. Some areas would be Michelin-star restaurants, shopping malls, five-star hotels, duty-free shops, and exposition and convention centers.
This round-the-clock entertainment facility would draw spending from the airport city residents and professional niche markets, such as stopover tourists and businesspeople.
To support the massive economic growth, there must be specific requirements for flexibility, including some benefits, complete services for new arrivals, and value-added tax. Other incentives could be applications for visas and work permits, personal income tax payments, and relaxed restrictions for foreigners working in Thailand in occupations that need qualified workers or where there are foreign employees shortages, Gen Prayut said.
The Prime Minister stated that ECC would be an important area to generate income for Thailand in the future.
“It will be a big leap forward in no more than 10 years, bringing the country a reputation in agriculture, modern industry, transportation, research innovation, and the BCG (Bio-Circular-Green Economic) model, which is sustainable development that is environmentally friendly for both Thailand and the world,” he went on.
Meanwhile, the government has offered tax breaks to 24-hour entertainment providers and alcohol and cigarette distributors in Airport City, It allows them to be exempt from corporate income tax and have dividends available from businesses exempt from corporate income tax for at least 15 years, said deputy government spokeswoman Rachada Dhnadirek.
As other tax advantages, the government could offer value-added tax (VAT) exemptions on purchases of 20,000 baht made by each tourist in the first ten years. The proposal still needs to be evaluated by the authorities.
