Thailand’s cabinet recently approved an increase in tax incentives given to film production. The measure – proposed by the Tourism and Sports Ministry – demonstrates the government’s continued commitment to their domestic film industry.

Currently, the government offers a cash rebate of up to 15 percent for every 50 million baht (almost $1.5 million) spent on location. There is an additional 5 percent rebate for films that hire local staff, promote tourism in the country, and shoot at less prominent tourist destinations. The rebate is capped at 75 million baht ($2.2 million).

The plan approved by the cabinet would dramatically increase these rates. The new cash rebate will be raised to 20 percent for every 100 million baht spent ($3 million), with eligibility for an additional 10 percent bonus if the film hires local staff and promotes Thai tourism. It also increases the rebate cap 150 million baht ($4.5 million).

This new plan follows another measure approved last October to waive taxes on personal income for foreign actors for five years.

Hollywood filmmakers have long flocked to Thailand to shoot films. Its idyllic countryside is frequently used as a stand-in for Vietnam in many war movies, including Da 5 Bloods, The Deer Hunter, and Good Morning Vietnam.

Film production continues to boost the national economy substantially, and the Thai government intends to keep it that way. Deputy government spokeswoman Traisuree Taisaranakul estimated that foreign film crews invest 1.2 billion ($35.8 million) into the country annually.