The Cabinet approved an income tax exemption on compensation payments under the fishing boat removal program to help fishermen receive their full relief payments for transitioning to new occupations.
On 27 July 2026, Ms. Lalida Perviwatthana, Deputy Spokesperson of the Prime Minister's Office, revealed that the Cabinet approved in principle a draft Royal Decree under the Revenue Code exempting personal and corporate income tax on compensation paid by the Department of Fisheries to fishing boat owners participating in the boat removal project for sustainable marine fisheries resource management in 2025 and 2026, as proposed by the Ministry of Finance. This aims to ease tax burdens and allow affected individuals to fully use the compensation as capital for new livelihoods and life quality restoration.
The Deputy Spokesperson explained that this measure forms part of the government’s initiative to manage the number of fishing boats in accordance with aquatic resource quantities, restore marine fisheries richness, reduce resource-use conflicts, and promote sustainable fishing. It also assists fishermen wishing to cease operations to transition to new occupations.
Ms. Lalida stated that the Cabinet approved the latest phase of the fishing boat removal project on 3 March 2025, setting a budget framework for compensation payments covering 923 fishing boats with a total of 1,622.6053 million baht, divided as follows:
877 boats designated for dismantling or scrapping, 1 boat repurposed for uses such as a café, hotel, or library, and 45 boats reclassified for other activities.
The Department of Fisheries will disburse compensation in two installments during 2025–2026.
The Deputy Spokesperson added that the draft Royal Decree stipulates that individuals and companies owning fishing boats will be exempt from income tax on compensation received from the Department of Fisheries. This compensation will not be included in taxable income at the end of the fiscal year, consistent with prior government measures for previous fishing boat removal phases.
“This measure will enable fishing boat owners to receive full compensation, which they can use as capital for new livelihoods, support their families, alleviate debt burdens, and reduce maintenance costs for boats no longer used in fishing. It represents balanced support for affected individuals alongside the conservation and restoration of the country’s marine fisheries resources,” Ms. Lalida said.
The Deputy Spokesperson further noted that the Ministry of Finance expects this measure to result in a tax revenue loss of approximately 167 million baht—about 160 million baht from personal income tax and 7 million baht from corporate income tax. However, it will directly reduce tax burdens for those impacted by the government project and support their career transitions and stable livelihoods. Relevant agencies have agreed in principle and recommended ongoing monitoring and evaluation of marine resource recovery and impacts on fishing communities.