To promote and encourage the business operators to have a greater participation in skills development by offering an incentive measure in tax exemption and deduction including the rights and benefits in various cases as well as to establish a revolving skills development fund to be used for the purpose. The Skill Development the Promotion Act B.E Justification

This Act required the business operators whose business falls in the category, type, size and the number of employees and is operating in the area as prescribed must make a contribution towards the Fund at the rate not exceeding one percent of the wage the employers paid in the final year before the year the contribution starts, except in the case the training activities have been carried out according to the requirements. Important contents mentioned in the Skills Development Fund.

(At present, the second draft requires the business operators of all trades and areas throughout the country with over 100 employees must make a contribution towards the Fund at the rate of one percent of the wage paid in a year. The calculation of contribution is based on the wage at the same rate fixed by the Ministry of Labour and on the number of employees who have not received training)

The Rights and Benefits given to the Business Operators The business operators, whether under or not under the training providing requirements, shall receive the rights and benefits as follows: 1) a tax deduction on the expense spent for training purpose of not less than 50 percent. 2) The right to bring into the kingdom the skilled technicians or experts and their spouses and dependents for teaching purpose.

3) The rights to be excluded from the law governing private schools 4) The rights to be excluded from the Labour Protection and the Labour Relation Laws (in the case of pre-employment training) 5) The rights to be exempted from the import tax on equipments and machinery brought into the kingdom for training purposes provided in the training centers. (in the case of the business operators who have the licensed centers for training activities)

6) The rights to deduct the electricity and water utility bills at 2 times the expense spent for the training purpose for the benefit of calculation on the income tax (in the case when the training activities have been held in the licensed centers) 7) The right to receive the consultation, advice, and assistance from the Department of Skill Development in all matters.