Taxing tunes: Music giant pitches cut to boost Thailand’s soft power
Thailand’s largest music company made a bold appeal to the government for a corporate tax reduction in the entertainment sector, arguing it could supercharge the industry and bolster the nation’s soft power ambitions.
GMM Music Plc CEO Phawit Chitrakorn paints a picture of an industry that thrives on slim profit margins, clocking in at a modest average of 10%.
Phawit elaborated that, with the film, TV, and music industries collectively generating an annual revenue of 50 billion baht, the corresponding profit stands around 5 billion baht. With the current corporate income tax set at 20%, a tax exemption would see the government taking a hit of only 1 billion baht in lost revenue, he argued.
To nurture the entertainment sector and advance Thailand’s soft power objectives, Phawit proposed that the government consider tax exemptions, potentially aligning with the Board of Investment’s promotion criteria.
He emphasised that such exemptions would allow companies to boost their revenue and reinvest in their growth.
As vice-chairman of the National Soft Power Development Subcommittee for Music, Phawit revealed that talks with government bodies about potential tax breaks are already in the works.
For Thai soft power to shine globally, he asserted, local cultural products must first charm Thai audiences. Engaging all stakeholders is essential, with the ultimate aim of luring international appreciation for Thailand’s soft power at home, rather than relying solely on exports.
Phawit drew comparisons to South Korea’s triumph, noting that Korean stakeholders initially honed their focus on domestic promotion before branching out, a strategy that catapulted Korean culture to international fame.
Developing Thailand’s soft power, he insisted, requires empowering the behind-the-scenes teams driving this cultural push, reported Bangkok Post.
Forecasting a 7-10% growth for the Thai music industry this year, Phawit cited surging revenues from digital channels, concert organisation, and artist management as key growth drivers.
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