Thailand is planning to increase the tax allowance and reduce lock-up periods for environmental, social, and governance (ESG)–focused fund holders in an effort to strengthen the local equity market.
Individual investments up to THB 300,000 (USD 8,170) in ESG-focused funds will now be eligible for tax breaks; an increase from the previous limit of THB 100,000, according to Pornanong Budsaratragoon, secretary-general of the Securities and Exchange Commission of Thailand.
Additionally, the government will reduce the mandatory holding period for these investments to qualify for the tax waiver from eight years to five years.
