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Government Accelerates Tax Measures to Unlock U-Tapao Airport–Eastern Aviation City, Aiming to Attract 1.3 Trillion Baht Investment

Politic25 Aug 2026 16:11 GMT+7

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Government Accelerates Tax Measures to Unlock U-Tapao Airport–Eastern Aviation City, Aiming to Attract 1.3 Trillion Baht Investment

The government is accelerating the removal of tax restrictions to support the "U-Tapao Airport–Eastern Aviation City" project, aiming for practical results by September 2026. It expects to attract 1.3 trillion baht in private investment and create over 63,000 jobs.


On 25 August 2026, Ms. Lalida Pertwiwatthana, Deputy Spokesperson of the Prime Minister's Office, stated that the Cabinet has acknowledged urgent and necessary support measures to initiate the development of U-Tapao Airport and Eastern Aviation City. This follows the resolution of the Eastern Economic Corridor Policy Committee (EECPC), with the goal of rapidly creating an investment-friendly environment, attracting target businesses and industries, and accelerating project progress.


The Deputy Spokesperson explained that the U-Tapao Airport and Eastern Aviation City development is a key infrastructure project within the Eastern Economic Corridor (EEC). The EEC Office (EECO) and U-Tapao International Aviation Company Limited (UTA) signed an investment contract on 19 June 2020. The proposed measures aim to incentivize economic activities and investment in the area, enabling the project to advance and attract leading operators to invest more.


Key measures approved by the EECPC cover tax, investment, facilitation for operators and foreign personnel, infrastructure development, and economic activities. A major measure allows operators to deduct twice the amount of capital expenditures (CAPEX) and operational expenses (OPEX) when calculating corporate income tax. Additional measures may be considered for businesses promoting skilled labor, advanced technology, clean energy, knowledge transfer, or high-value assets in special target industries.


Additionally, there are provisions allowing foreigners to reside and work or operate businesses within the Eastern Aviation City Special Economic Zone, including a special temporary residence visa (EECa Visa). Also included is a corporate income tax reduction for international transport operators focusing on air transport. These tax measures will apply for five-year periods with performance and cost-effectiveness evaluations before potential renewal.


There are also plans to reduce registration fees for leases and property transfers, as well as studies on developing cruise ports, yacht marinas, feeder transport systems, and expanding the Eastern Aviation City Special Economic Zone. These aim to systematically connect the airport with tourism, travel, and investment activities in the surrounding area.


Ms. Lalida noted that the EECPC approved adjustments to some measures to align with legal requirements and practical operations, such as tax exemptions on goods and services within the Free Trade Zone, and guidelines for importing, maintaining, and storing racing cars, classic cars, and personal collections. The EECO will coordinate with relevant agencies to set appropriate criteria and control measures.


The EECPC has assigned the EECO and related agencies to expedite legislation and implementation to ensure that the approved measures can take effect by 30 September 2026.


“These measures aim beyond merely advancing the airport project; they seek to stimulate economic activities around the Eastern Aviation City. The EECO estimates that private sector investment within the project will reach about 1.3 trillion baht over its lifetime, creating 63,701 jobs, increasing foreign tourists by approximately 400,000 annually, and boosting local spending by around 20 billion baht when operations commence. The project is expected to generate over 37 billion baht in GDP in its first year and continue growing throughout its duration,” she said.


The Deputy Spokesperson concluded that the government intends for U-Tapao and the Eastern Aviation City to be more than aviation infrastructure—they aim to serve as mechanisms to attract investment, tourism, high-value technology and service industries, linking EEC development to the national economy, and creating concrete employment and economic opportunities in the region over the long term.