ID :
489145
Thu, 04/19/2018 - 08:03
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Thai government backs merger of banks

BANGKOK, April 19 (TNA) - The Thai government, through the Ministry of Finance, supports the merger of banks in the country to enhance their business capacity and competitiveness in the regional banking sector. Thai Finance Minister Apisak Tantivorawong told journalists of the policy on April 18, giving the green light for allied banks in the country to start their negotiations on their merger, namely Bangkok-based TMB Bank. Under the Thai Finance Ministry's policy, tax incentives are offered to banks, if their separate merger processes are completed, including the exemption of their corporate, personal income, value-added and specific business taxes, as well as a waiver of fees imposed on shareholders of the mergering banks. The policy, which is in accordance with the development plan of financial institutes (2016-2020), phase 3, implemented by the Bank of Thailand (BOT), should result in increased economic activities and private investment in the country, totally worth 3-7 billion baht, although the Ministry of Finance should lose its tax revenues of about 0.6-1.4 billion baht. (TNA)

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