Finance Ministry to release ESG investment promotional package
The Finance Ministry is preparing to release an incentives package to support environment, social, governance (ESG) related investments. The package, which is expected to be released in the first quarter of 2024, will include tax deductions for investments in such projects.
According to the Finance Ministry's Permanent Secretary Lavaron Sangsnit, the package aims to encourage private investment in ESG projects, which the government regards as vital to Thailand's long-term economic development and environmental sustainability.
Lavaron said the ministry is currently in the process of formulating sustainable development measures including initiatives aligned with ESG aspects and reflecting global investment trends. Businesses with strong ESG practices showcase their competitiveness and long-term growth potential, he noted
There is currently a variety of measures aimed at promoting and incentivising the country's transition towards sustainability, and carbon tax measures to encourage investments in green businesses that utilise renewable and cleaner energy sources are being considered.
The specific details of the package have yet to be released, but the Ministry has said that it will include tax deductions for a variety of ESG investments, namely in renewable energy, energy efficiency, waste management, sustainable agriculture, and sustainable tourism
The ministry said that the package will be fair and equitable, and will not discriminate against any particular type of ESG investment.
The release of the ESG support package is a significant step by the Thai government to promote environmentally sound and sustainable investments. The package is expected to encourage private investment in these important areas and help to make Thailand a more sustainable country.
In addition, it is expected to have a positive impact on Thailand's economy and environment, create jobs and boost economic growth, and also put Thailand on the map as a leader in ESG investment and make the country more attractive to foreign investors looking to invest in ESG programmes.
