Thai cabinet eyes five-year fee waiver to keep southern factories running

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Industry Minister Varawut Silpa-archa seeks five-year factory fee exemptions for 683 factories employing about 15,000 workers.

SONGKHLA, Thailand – Industry Minister Varawut Silpa-archa is seeking Cabinet approval for a five-year extension of factory fee exemptions in Narathiwat, Pattani, and Yala provinces, as well as in Chana, Thepha, Na Thawi, and Saba Yoi districts in Songkhla. The proposal, presented at the mobile Cabinet meeting in Songkhla on Sep 1, would take effect retroactively from June 20, 2026.

The exemptions cover fees for factory operating licenses, license replacement and transfers, factory and machinery expansion, changes to factory premises or buildings, and annual charges. The measure is set to reduce operating costs, help manufacturers maintain or expand production, attract investment, and support local employment and income.

A total of 683 factories employing about 15,000 people are eligible, compared with 119 factories in 2021. The current total includes 666 Category 3 factories, which require licenses before operations begin, and 17 Category 2 factories, which must notify the authorities before operations begin.

The five-year extension is expected to reduce government fee revenue by about 13.28 million baht. The Ministry of Industry expects the exemptions to ease financial pressure on businesses, preserve manufacturing operations and jobs, and encourage continued investment in southern border areas where businesses face different operating conditions and constraints from those elsewhere in the country. (NNT)