17 June 2019
THAILAND: Biodegradable Plastic Packaging Tax Incentives Adopted
Businesses are now entitled to claim tax deductions of up to 1.25 times the amount they spend on biodegradable plastic packaging. In practice, this will mean, should a company spend Baht 100,000 (US$3160) on biodegradable plastics, it will be allowed to claim a deduction of Baht 125,000 against its total taxable income. This deduction may be claimed against all relevant expenses incurred between 1 January 2019 and 31 December 2021.
Although the move is expected to result in a loss of overall tax revenue of Baht 1.3 billion, it is expected to lead to reduced plastics use, while enabling the authorities to tackle the country’s plastic waste management problem. It is also hoped it will prompt an estimated 10% of the country’s plastics manufacturers to shift into producing biodegradable plastics, while helping establish Thailand as one of the ASEAN bloc’s key bio-hubs.