To help businesses with plants damaged by the floods in the country, Thailand’s government has approved the waiving of duties on their imports of machinery and spare parts, until the end of June 2012.
The measure will cover imports from October 25 until that date. At its announcement, the Deputy Prime Minister and Commerce Minister, Kittiratt Na-Ranong, said that the government could not quantify its revenue loss from the waiver, as it would have to await specification by businesses of the goods to be imported before being able to make an estimate.
The country’s automobile manufacturing industry is particularly interested in the waiver, to offset the output it lost during the floods, as duty will be exempted on the import of car parts throughout the auto industry.
However, it was reported that, in addition, Honda’s manufacturing plant in Thailand would also be allowed to import completely-built-up cars free of import duty, because its factory was inundated and had to be completely closed during the flood.
It is expected that final regulations on the operation of the waiver, to include restrictions dependent on normal production levels in the country prior to the flooding, will be detailed shortly.
Source: Tax News
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