Prime Minister General Prayut Chan-o-cha on 17 June 2020 chaired a BOI meeting, which agreed to adjust the investment promotion terms and benefits for the agricultural industry, based on the BCG model.
The objective is to encourage the development and adoption of technology and innovation in order to add value to the agriculture sector’s output and help improve its productivity.
BOI has revised the business categories, terms, and benefits as follows:
(1) A new activity, Plant Factory, is added to the list of activities eligible for BOI incentives. The plant factory is a facility that aids the steady production of high-quality vegetables all year round by artificially controlling the cultivation environment (e.g., light, temperature, humidity, carbon dioxide concentration, and culture solution), allowing growers to plan production.
This new technology will enable Thailand to improve both the quality and quantity of agricultural produce for both domestic consumption and exports. Such businesses will be eligible for corporate income tax exemption for a period of five years.
(2) The scope, terms, and benefits for certain types of agriculture-related activities have been revised to encourage the use of technology and innovation and sustainable development. These types include pet food and animal feed, and the grading, packaging, and storage of plants, vegetables, fruits or flowers, and products from agricultural waste.