The Ministries of Industry and Finance have joined forces to launch a new program of tax incentives designed to encourage businesses to reduce their use of non-biodegradable plastics and cut down on plastic waste. The tax reduction amounts to around 25% of what companies paid to buy biodegradable plastic products between 2022 and 2024.
Most major Thai corporations have already been implementing policies and programs to reduce their use or production of single-use plastics and attempting to integrate more environmentally friendly substitutes. Thailand’s government, private sector and society have been working collectively to reduce plastic use and waste and begin using new materials when possible.
The government initially responded to the plastic problem by cracking down on polluters. Policymakers realized that a holistic approach was needed that would include incentives as well as penalties.
While major corporations already adopting responsible policies on plastics will benefit from the tax breaks, the government hopes the incentive package will encourage smaller and medium-sized enterprises and suppliers to move in the same direction.
Thailand aspires to become Southeast Asia’s “bio hub” by 2027. To achieve that goal, it is supporting the development of biodegradable plastic materials, together with the use of biochemical and biopharmaceutical technologies.
(Source: Royal Thai Embassy in Washington)