Thailand grants incentive to bioplastic industry

Thailand is aiming to transform its bioplastics production into a leading industry in the ASEAN region. To encourage investments into this sector, the Thai government has approved the extension of the 25% corporate tax exemption. 

The tax incentive first took effect on 1 January 2019 but expired on 31 December 2021. The exemption was implemented to encourage private companies to purchase bioplastic products from Thai producers, which is seen as one way to boost bioplastics production in Thailand.  In 2020, around 14 companies were eligible for the tax exemption worth 18.3 million baht (US$544,000). 

In 2021, the Thai government approved the Strategic Plan to achieve a bio, circular and green (BCG) economy covering the period 2021 to 2026 s part of its national development strategy.  The BCG model covers four areas namely agriculture and food; health care and medical services; energy and biochemistry; and tourism and the creative economy.