Cabinet unlocks U-Tapao Aviation City to attract 1.3 trillion investme

Matichon•Politics•1d ago

Reader Briefing

The Thai Cabinet has approved urgent support measures for the U-Tapao Airport and Eastern Aviation City development project to attract private investment.

•The Cabinet acknowledged support measures for U-Tapao Airport and Eastern Aviation City development following a resolution by the Eastern Special Development Zone Policy Committee.
•Key incentives include 2x tax deductions for CAPEX and OPEX and corporate income tax reductions for international air transport operators.
•The Office of the Eastern Special Development Zone Policy Committee expects to stimulate private investment of approximately 1.3 trillion baht over the project's lifespan.
•The government aims for these measures to be implementable by September 30, 2026.

Overview

•The Cabinet acknowledged urgent support measures to create an environment conducive to investment for the U-Tapao Airport and Eastern Aviation City development.
•The Office of the Eastern Special Development Zone Policy Committee and U-Tapao International Aviation Company Limited signed a joint investment agreement on June 19, 2020.
•The Eastern Special Development Zone Policy Committee approved tax incentives allowing operators to deduct CAPEX and OPEX expenses twice for corporate income tax calculations.
•The government introduced the EECa Visa to allow foreigners to reside, work, or operate businesses within the Eastern Aviation City special economic promotion zone.
•The Office of the Eastern Special Development Zone Policy Committee estimates the project will create over 63,701 jobs and increase foreign tourists by approximately 400,000 people per year.
•The project is expected to generate a GDP of more than 37,000 million baht in the first year of operation.
•The Office of the Eastern Special Development Zone Policy Committee and relevant agencies are tasked with accelerating legislation to make measures effective by September 30, 2026.

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Key Quotes

Lalida Periswiwattana

"This measure aims for more than just moving the airport project forward, but to make economic activities around the aviation city a reality."

มาตรการครั้งนี้มีเป้าหมายมากกว่าการเดินหน้าโครงการสนามบิน แต่เป็นการสร้างกิจกรรมทางเศรษฐกิจรอบเมืองการบินให้เกิดขึ้นจริง

Key Entities

Person

Lalida Periswiwattana(ลลิดา เพริศวิวัฒนา)

Deputy Government Spokesperson who disclosed the Cabinet's resolution.

Organization

Cabinet(คณะรัฐมนตรี)

The government body that acknowledged the support measures for the U-Tapao Airport and Eastern Aviation City project.

Eastern Special Development Zone Policy Committee(คณะกรรมการนโยบายเขตพัฒนาพิเศษภาคตะวันออก)

The committee that approved the support measures for the aviation city project.

Office of the Eastern Special Development Zone Policy Committee(สำนักงานคณะกรรมการนโยบายเขตพัฒนาพิเศษภาคตะวันออก)

The agency that signed the investment agreement and is tasked with accelerating legislation for the project.

U-Tapao International Aviation Company Limited(บริษัท อู่ตะเภา อินเตอร์เนชั่นแนล เอวิเอชั่น จำกัด)

The company that signed a joint investment agreement for the airport development on June 19, 2020.

Place

U-Tapao Airport(สนามบินอู่ตะเภา)ℹ️

A key infrastructure project within the Eastern Special Development Zone.

Eastern Aviation City(เมืองการบินภาคตะวันออก)

A special economic promotion zone linked to U-Tapao Airport to attract investment and tourism.

Eastern Special Development Zone(เขตพัฒนาพิเศษภาคตะวันออก)

The broader region, also known as EEC, where the aviation city project is located.

Policy

EECa Visa

A special temporary stay visa for foreigners working or operating businesses in the Eastern Aviation City.