New property tax rates passed by Thai assembly

[snoop1130]

New property tax rates passed by Thai assembly

By Pravit Rojanaphruk, Senior Staff Writer

 

The Bangkok skyline in 2013.

 

BANGKOK — A new land and building tax bill passed Friday by the junta-appointed National Legislative Assembly that will come to effect January 2020.

 

The new tax covers agricultural, residential, commercial and undeveloped property. It was passed 169-0 with two abstentions.

 

Full Story: http://www.khaosodenglish.com/news/business/2018/11/16/new-property-tax-rates-passed-by-thai-assembly/

 

-- © Copyright Khaosod English 2018-11-16

[theguyfromanotherforum]

Phew.... quite a while before 30sqm condos reach 50mil and the bubble bursts.

[cmsally]

All rather vague. Who is going to be responsible for collecting this tax? Is this an increase in an existing tax or is this on top of/ instead of an existing tax.

Can one plant tomatoes on unused land to make it become agricultural and if so does someone require an incentive to change the classification.

Who sets the value for the land?

I have endless questions on this one.

[snoop1130]

NLA agrees on new land and property tax rates

By The Nation

 

 

After 19 months for deliberation, the National Legislative Assembly unanimously voted on Friday to pass new land and property tax rates which will come into effect on January 1, 2020.

 

The new tax rate is 0.3 per cent for a residential unit worth more than Bt50 million, property worth below Bt50 million is exempt. However, if a house owner does not own land, the tax exemption will apply to a house worth no more than Bt10 million.

 

Estates being used for agricultural purposes will be subject to 0.15 per cent rate of the appraisal value. Farmland worth no more than Bt50 million is exempt.

 

Commercial use property will be taxed at 1.2 per cent.

 

Vacant land will be taxed at 1.2 per cent and it will be subject to a tax increase of 0.3 per cent every three years if it remains unused. But the maximum rate is 3 per cent.

 

All these rates are ceiling tax rates, the committee chaired by Finance Ministry’s permanent secretary will decide exact rates later.

 

Critics say the new tax would not help much in terms of government revenue, nor will it help to narrow the wide gap of inequality, due to tax exemptions.

 

Source: http://www.nationmultimedia.com/detail/breakingnews/30358734

 

-- © Copyright The Nation 2018-11-16

[anon7867763]

It was passed 169-0 with two abstentions. "Yes Sir we all agree" That's democracy at work !

[Chris Lawrence]

Great but what is the expected income?

[Chris Lawrence]

2020 is a lot of time to get your house in order for some of the ones at the higher rates?

[Srikcir]

16 hours ago, johnsnapo said:

It was passed 169-0 with two abstentions.

That's 171 members present out of a 197-member parliament.

26 MP's are absent permanently by permission of the junta-apointed NLA president.

Presumably, 26 absent active duty military serving as MP's have better things to do with their time. But they'll still receive "compensation" (not to be confused with "salary") as MP's in addition to their military pay. 

[Srikcir]

16 hours ago, snoop1130 said:

Critics say the new tax would not help much in terms of government revenue, nor will it help to narrow the wide gap of inequality, due to tax exemptions.

Vs. :

Prime Minister Gen Prayuth Chan-o-cha today [March 2015] publicly clarified the reason for the new tax rates stating that it was a necessity that will help in developing the country.

If the new land and building taxes rates were not proposed then VAT (value added tax) will have to be increased instead.

http://englishnews.thaipbs.or.th/new-proposed-tax-rates-for-land-and-houses-approved/

So not only worthless legislation but puts pressure on the next government to raise the VAT that is not a progressive tax and will further income inequality.