The Board of Investment (BoI) has approved in principle promotional privileges for two concessions that are vital infrastructure projects: U-tapao airport development and Digital Park Thailand.
BoI secretary-general Duangjai Asawachintachit said after the board's meeting, chaired by Prime Minister Prayut Chan-o-cha, that the privileges would pave the way for the Royal Thai Navy and CAT Telecom Plc, the owners of the two projects, to be included in the terms of reference (ToR).
The concession winners for the U-tapao development project will be entitled to tariff exemptions for imported machinery and corporate income tax waivers for eight years.
If their operations comply with the conditions given for the Eastern Economic Corridor (EEC) already offered by the BoI, the concession winners will be allowed to enjoy a 50% reduction in corporate income tax for an additional three years after the tax holiday.
For Digital Park Thailand, concession winners will also be entitled to similar tax incentives, but they will be given a corporate income tax exemption for another four years if their operations comply with BoI conditions for the EEC.
"The BoI's tax incentive grant is expected to make investment in the two projects more enticing to investors," Ms Duangjai said.
Under the EEC scheme, the transformation of U-tapao airport into Bangkok's third major commercial airport and a regional aviation hub is one of the most important infrastructure projects.
Expansion of U-tapao airport will enhance capacity to handle greater volumes of passengers, freight and flights, with concomitant promotion of multimodal connectivity to Don Mueang and Suvarnabhumi airports.
The project comprises airport expansion, with the construction of the second runway and taxiway as well as a third passenger terminal, and the development of aviation-related industries in its vicinity, which include maintenance, repair and overhaul (MRO) facilities, an aviation training centre, cargo facilities, a cargo village and a commercial precinct.
Upon completion, the project is expected to handle 60 million passengers annually. In addition to honing EEC development, the airport is expected to boost national competitiveness in terms of industrial, trading, investment, tourism and personnel development.
The EEC meeting, chaired by the prime minister, resolved on June 4 to develop the first phase of the aerotropolis within five years to support links with the high-speed railway connecting Don Mueang, Suvarnabhumi and U-tapao airports.
The first phase of the 6,500-rai U-tapao airport and aviation centre will be capable of handling 15 million passengers. Other projects include a second runway, a business zone, an MRO centre and air cargo facilities.
