1.25 times of tax can be deducted for enterprises' expenditure on purchasing green materials

According to the report of the Thai World Daily on January 9, Surya, the Minister of Industry of Thailand, revealed on the 9th that the Ministry of Industry and the Ministry of Finance have worked together to develop sustainable incentives for biodegradable plastics, so that enterprises can use the expenses for purchasing biodegradable plastics to deduct 1.25 times of income tax. Enterprises can apply for deduction from the corporate income tax paid in 2022-2024. The enterprise must purchase biodegradable plastic products from the manufacturer, and then obtain the certification documents issued by the Industrial Economic Office. The specific rules and regulations shall be implemented according to the documents issued by the Industrial Economic Office under the government's BCG economic model policy. Ms. Volapu, director of the Industrial Economic Office, said that the Industrial Economic Office would issue the certification standards for biodegradable plastic products to plastic manufacturers sold in 2022-2024. Enterprises must submit application forms to the Industrial Economic Office and the Industrial Economic Office will review them according to four standards. As long as one of the specified standards is met, the products can obtain the certification of the Industrial Product Standards Office; The product has been certified by other equivalent standards abroad; The product has the certificate of conformity with the relevant standard inspection institution; The plastic particles used in the product meet the certification of Industrial Product Standards Office No. 17088 or equivalent standards, and the copy of the product test results. According to the standards in items 3 and 4 above, it is necessary to hold the certificate approved by the Industrial Economy Office and issued by the inspection institution participated by the Thai Institute of Science and Technology, the National Police and the Material Technology Center. In terms of promoting this measure to encourage the use of biodegradable plastics, 7 enterprises have obtained the certificate of biodegradable plastic products sold during 2022-2024, and the Industrial Economic Office has issued 72 certificates, including 57 plastic pipe manufacturing enterprises; 10 garbage bags, plastic bags and zipper bags; 2 copies of plastic bags, plastic pipes and films; 2 plastic cups and caps; 1 plastic tray. Promote the measures to deduct the income tax of biodegradable plastic products, and stipulate that 25% of the company's or joint-stock company's expenditure on the purchase of biodegradable plastic products from January 1, 2022 to December 31, 2024 shall be used to deduct the enterprise income tax.