Thai government to offer higher tax incentives to insurers

BANGKOK, June 23 (TNA) - In an attempt to encourage more people to buy life insurance or to enter a long-term savings, the Thai government is considering to offer a higher tax incentives in the near future. Thai Deputy Prime Minister and Finance Minister Kittirat Na-Ranong said Saturday, when presiding over the prizes presentation to outstanding insurance agents in the country for 2012, that insurance agents of over 300,000 people working under the system nationwide are able to persuade more people to buy life insurance; while the government is also encouraging them to buy insurance in different forms. Kittirat revealed that discussions have been held with the Ministry of Finance's Revenue Department to provide higher tax incentives to those buying life insurance or those engaging in long-term savings, namely Long-Term Equity Funds or Retirement Mutual Funds, with conclusions expected shortly, and that Thailand's corporate income tax will also be further reduced to 21 per cent next year, from 23 per cent now. Meanwhile, Thai Industry Minister M.R. Pongvas Svasti suggested in an opening speech of ‘Post Today–K SME & Franchise Expo 2012’ that the Thai industrialists, especially those of small medium-sized enterprises (SMEs), accelerate on improving their products, as the ASEAN Economy Community (AEC), with the liberalization of regional trade and services, is scheduled to be formed by 2015. M.R. Pongvas acknowledged that his ministry, the Board of Investment of Thailand (BOI) and other related government agencies are also improving their rules and regulations to assist Thai SMEs, recommending that local businesses which remain unable to compete with regional rivals in the initial stage, such as those in the textile and furniture sectors relocate their production bases to neighbouring countries but maintain their design works in Thailand. (TNA)