The cabinet yesterday approved waiving the corporate tax and value-added tax (VAT) for funds raised via initial coin offerings (ICOs) of investment tokens, says Finance Minister Arkhom Termpittayapaisith.
Investors in the secondary market will also be entitled to the VAT waiver when trading such tokens, he said.
The waiver aims to encourage companies in the local stock exchanges or outside them to launch ICOs.
The waiver only applies to investment tokens, with the Finance Ministry yet to consider a waiver for utility tokens, said Mr Arkhom.
The cabinet also approved the Bank of Thailand supervising the growing sector of hire-purchase and leasing of cars and motorcycles in an effort to strengthen consumer protection and tackle household debt.
As part of the move, the cabinet approved a draft of the decree regulating hire-purchase and car and motorcycle leasing falling under the Financial Institution Business Act of 2008.
According to the ministry, hire-purchase and leasing transactions account for 12.4% of the nation's household debt, with one-third of total transactions conducted by operators that are not under the authority of a specific agency.
The number of consumer complaints regarding these businesses has also risen.
The central bank supervision of these businesses is to ensure the fair treatment of consumers by operators and ensure data transparency in the sector, said the ministry.
The draft decree covers juristic entities, but not business operators such as financial institutions, which are supervised by regulators.
The cabinet also approved the central bank extending its soft loan scheme to support business recovery and transformation from the impact of the pandemic for another one year from April 9, according to the ministry.
In addition, the cabinet endorsed the extension of zero excise tax on diesel and bunker oil, which are used for electricity generation, for another six months from March 16 to Sept 15 to ease the public burden from rising living costs. The Excise Department estimates the extension will cost it revenue of around 8 billion baht, of which 7.92 billion is for diesel.
