RESTRICTED
WORLD TRADE G/SCM/Q2/THA/2
3October 1996
ORGANIZATION(96-3986)
Original: English Committee onSubsidies andCountervailing Measures
SUBSIDIES
Questions from CANADA Regarding theNew
andFullNotification ofTHAILAND1
Thefollowing communication, dated 20September 1996, hasbeenreceived fromthePermanent
Mission ofCanada.
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1. Could theGovernment ofThailand provide some information ontheamount ofsubsidy for
eachoftherefinancingprogrammes?WhiletheBOTpurchasespromissorynotes,thebenefitisprovided
through theinterest ratescharged. Theamount ofsubsidy isthedifference between theinterest rate
under normal commercial conditions andtheinterest rateoffered asaresult oftherefinancing schemes.
2. TheIndustrial Credit Refinancing Scheme formedium andlargescaleindustries specifies that
themanufacturer mustnothavetotalassets exceeding B200million. Qualification forthesmall scale
industry scheme issetatnomore thanB20million. Could asmall scaleindustry qualify forassistance
under bothprogrammes?
3. Regarding theInvestment Incentive Scheme:
(a) Would theGovernment ofThailand clarify whether thebenefits oftheprogramme areautomatic
upon qualification orwhether applicants would thennegotiate thebenefits.
(b) Ifthebenefits differ witheachapplicant,
(i) Would theGovernment ofThailand provide further information ontherelative
importance ofeachofthemajor fiscal incentives granted.
(ii) How many companies benefit from more thanoneincentive?
(c) What arethesalesofcompanies benefiting fromcorporate income taxexemption andreduction?
1G/SCM/N/3/THA