The Cabinet has approved extending the exemption of factory fees in the southern border provinces for an additional five years, starting from 20 June 2026, to reduce burdens on operators and maintain production and employment bases in the area.
On 1 September 2026, Ms. Lalida Pertvivatana, Deputy Government Spokesperson, announced that the Cabinet approved the principle of a draft ministerial regulation exempting fees for factory operators in Narathiwat, Pattani, Yala provinces, and in Songkhla province's Chana, Thepha, Nathawi, and Saba Yoi districts for five years starting 20 June 2026. This aims to reduce operational costs, preserve production and employment bases, and build confidence for the private sector to continue business in the area.
The measure covers all sizes of Category 2 and Category 3 factories in the specified areas, exempting fees under the Factory Act B.E. 2535, including factory operation licenses, expansion permits, replacement licenses, license transfers, notifications relating to exemptions for factory expansion, adjustments in machinery not considered expansions, increases in building area or new factory buildings, as well as related annual fees.
The Deputy Government Spokesperson stated this exemption continues from the previous ministerial regulation, which expired on 19 June 2026, so the new draft regulation takes effect from 20 June 2026 to avoid any gap. This is the fourth time fee exemptions have been granted to factory operators in these areas.
Previously, the government has continuously used factory fee exemption measures in the southern border provinces to alleviate impacts from local situations and reduce costs for operators. This draft regulation aims to support operators in maintaining their businesses locally, reducing incentives to relocate production bases, and encouraging investment and business expansion.
Data from the past five years shows there are 666 Category 3 factories and 17 Category 2 factories, totaling 683 factories. The Ministry of Industry estimates the fee exemption will cost the government about 13.28 million baht in lost revenue but expects it will ease operators' expenses and benefit the local economy by preserving production bases, employment, and residents' incomes.
“This measure is not only about fee exemptions but is intended to help operators in the southern border provinces continue their businesses with reduced costs and confidence to maintain or expand investments, which in turn preserves jobs and incomes for local people,” the Deputy Government Spokesperson said.
Ms. Lalida added that supporting operators in these vulnerable areas is part of strengthening the local economy. The government wants the manufacturing sector to remain a source of jobs, income, and economic circulation in communities, while encouraging the private sector to keep investing and operating in the southern border provinces continuously.
The draft ministerial regulation will proceed through the legal process before officially coming into effect, with the fee exemption period set for five years starting from 20 June 2026.