Promoting the usages of Bioplastic in Thailand through a Bioplastic Tax Deduction Campaign
SMS Group and other Thai Bioplastics Industry Association Members met with the Minister of Finance to promote the usages of Bioplastic in Thailand through a Bioplastic Tax Deduction Campaign. The minister of finance, Mr. Arkhom Termpittayapaisith welcomed private organizations from Thai Bioplastics Industry Association (TBIA) led by Mr. Viboon Pungprasert and SMS Group, Dr. Siwarutt Boonyarattanakalin, to propose a tax deduction campaign promoting bioplastic product usages in Thailand.
The objective of the campaign is to promote the usages of bioplastics throughout various sectors by increasing the tax deduction for retailers who buy bioplastic products. In addition, the campaign would facilitate Thailand to be the hub of ASEAN in bioplastic manufacturing. Wider usages of bioplastic products such as biodegradable trash bags, shopping bags, and drinking straws in the private sector, public sector, and at the household scales would constitute an important measure to solve the plastic waste pollution in Thailand. The proposed campaign follows the concept ‘Half for Half’ which continues to be very successful according to the Ministry of Finance. The cost of bioplastic is generally two to three times higher than conventional plastics. This higher cost is a major barrier for many organizations pressing forward the usages of bioplastics even though bioplastic products bear tremendous benefits paving the way toward the Sustainable World. Should the tax deduction from the expenses on purchasing bioplastic products be approved, the effective cost of bioplastic products would essentially be lowered to the point that it will be competitive with that of conventional plastic products. Consequently, Thailand will receive direct benefits from the use of certified biodegradable plastics in addition to already being the world-leading bioplastic manufacturer.
The meeting participants from the entire value chain of the bioplastic industry all agree that support from the government in the form of tax deduction is extremely essential. ‘Half for Half’ will be in effect should a 350% tax deduction on the corporates’ expenses of bioplastic products be approved. All participants are aiming to make bioplastic products affordable for consumers at any level of the economy.
SMS Corporation as a modified tapioca manufacturer, emphasized that since Thailand is an agricultural country, it is important that we strive to add value to our agricultural products. The government has foreseen the necessity to achieve sustainability through the practice of the BCG economic model (Bio-Circular-Green Economy). Through Thailand’s economic crops including cassava and sugar cane, the bioplastic industries are our innovations toward sustainability.
Moreover, the wide usage of bioplastic in Thailand would further fulfill the commitment Thailand has made during UNFCCC COP26. To mitigate climate change, Prime Minister Gen Prayut Chan-o-cha has pledged that Thailand will achieve carbon neutrality by 2065 and net-zero greenhouse gas emissions in 2065. A major step toward minimizing carbon dioxide emission is done by using bioplastics containing the highest biobased contents made from plants