Are Agricultural Crops On Unused Land Just A Tax Dodge?

[webfact]

 

By Editor

 

A Facebook post by a popular Bangkok property developer, apparently aimed at boosting its “green image”, appears to have backfired when it drew ridicule from many social networkers who commented in other words the company was allegedly trying to avoid paying land tax.

 

Taking into account the lowest rate of the median land price of THB30,000 per square wah, the 50-rai plot in question should be valued at a minimum THB600 million.

 

The tax for unused land is 0.3 per cent per year of the land value, so tax for this kind of plot should amount to around THB1.8 million. But agricultural land is taxed at only 0.01 per cent per year, so tax on the plot would be THB60,000.

 

The government had announced that it would collect land tax on unused land in full without reduction this year.  Bananas are one of nine crops allowed to be cited as a plantation eligible for the agricultural land tax rate.

 

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The appearance of agricultural crops on unused land around the country is not unusual, posing the question; is this just a tax avoidance measure?

 

Source: https://royalcoastreview.com/2022/05/are-agricultural-crops-on-unused-land-just-a-tax-dodge/

 

-- © Copyright Royal Coast Review 2022-05-26

 

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[Excel]

What an excellent subject matter and will be interesting to read feedback from knowledgeable people. Would be interested to know at what density banana trees would need to be planted in order to qualify as surely say 10 trees per Rai would not be acceptable yet say one tree per rai together with all costs and irrigation involved could quickly outstrip the advantage.

Edited May 26, 2022 by Excel

[ThomasThBKK]

This unused land tax is so stupid.

 

 

They will deforest all land and even the islands just to plant banana trees, if they don't destroy the forrests they have to pay more taxes on them. 

 

 

Did no one think about this dumbass tax for more than a minute.......jeeeeez

 

 

 

 

[Excel]

6 minutes ago, ThomasThBKK said:

This unused land tax is so stupid.

 

 

They will deforest all land and even the islands just to plant banana trees, if they don't destroy the forrests they have to pay more taxes on them. 

 

 

Did no one think about this dumbass tax for more than a minute.......jeeeeez

 

 

 

 

This is the Thai government you know ????

[ScotlandtheBrave]

Over the last year or two the cutting down of large, old trees on empty plots of land around the condo building I have lived in for eleven years has been really sad. These beautiful trees provided shade and a lovely environment. This land tax nonsense is ridiculous and is causing serious harm to the environment.

[ThomasThBKK]

5 minutes ago, ScotlandtheBrave said:

Over the last year or two the cutting down of large, old trees on empty plots of land around the condo building I have lived in for eleven years has been really sad. These beautiful trees provided shade and a lovely environment. This land tax nonsense is ridiculous and is causing serious harm to the environment.

Absolutely, but even worse on the islands and mainland near the sea. This will cause extreme drainage and erosion problems for Thailand's coasts ????

Edited May 26, 2022 by ThomasThBKK

[howlee101]

In the moo baan where I live, many once vacant lots now are being adorned with banana plants.  My wife said it was due to the land tax.  

 

Not related to land tax, but my military days in Hawaii, the "rules" when buying residential land was it required a roofed structure within a certain time period.  Well, the "rule" was so vague that developers were building a structure on each lot which consisted of something akin to a doll house on stilts....it was a roofed structure for sure.  

[Misterwhisper]

2 hours ago, ThomasThBKK said:

This unused land tax is so stupid.

 

 

They will deforest all land and even the islands just to plant banana trees, if they don't destroy the forrests they have to pay more taxes on them. 

 

 

Did no one think about this dumbass tax for more than a minute.......jeeeeez

 

 

 

 

Exactly my thinking. If anything, they actually should grant a tax REPRIEVE for fallow or unused land on which the owners allow nature to take over.

 

I can cite a first-hand example for that "if you plant bananas you pay less land tax" folly.

 

Literally right next to my house, there was a 2-rai plot on which a dense forest with mature trees and lots of undergrowth had developed. It was the perfect urban biodiversity habitat for all sorts of plants and copious wildlife such as birds, reptiles and small mammals. When I opened my kitchen window, I would hear birds chirping instead of being assaulted by the incessant traffic noise from the main road.  

 

But one day the entire plot - trees and all - was simply bulldozed down. It was a heart wrenching sight and I wondered how many animals were simply buried alive, how many bird nests were destroyed.

 

After the forest had been turned into a plot of barren land, workers arrived and started planting banana trees (of course!). The intent was clear: the land's owner wanted to save on land tax.

 

In the meantime, the banana trees have matured -- but the previous brush and even new trees have grown back, too. However, about twice a year workers cut down the "wild" growth just to maintain the illusion that this plot is used for agricultural purposes.

 

If fallow plots would be exempted from land tax, perhaps there would be a chance for more green areas to break up this desolate concrete jungle that is inner Bangkok.  

[zzaa09]

The usual profit incentive and corrupt measures are in order.

[The Hammer2021]

3 hours ago, ThomasThBKK said:

This unused land tax is so stupid.

 

 

They will deforest all land and even the islands just to plant banana trees, if they don't destroy the forrests they have to pay more taxes on them. 

 

 

Did no one think about this dumbass tax for more than a minute.......jeeeeez

 

 

 

 

Unused urban land, waiting  for building development, often defined as brownsite land  in other countries.  They are not  talking  about all unused land in the country! Lol.

[The Hammer2021]

It's lovely  to see  the dirty urban jungles often scattered with garbage and used  as toilets bring cleared  and replanted  with  useful crops. Its happening around Pratumnak and  amazing to  see how small saplings grow to large fruit  beating trees.  Amazing  Thailand!

[KhunBENQ]

Banana plants on that infamous empty plot on Pattaya beach rd.

Too funny

[KhunBENQ]

Pattaya beach rd., VT6 to the left:

 

Jomtien somewhere between Chaiyaphruek and Watboon:

Edited May 26, 2022 by KhunBENQ

[hotchilli]

4 hours ago, webfact said:

The appearance of agricultural crops on unused land around the country is not unusual, posing the question; is this just a tax avoidance measure?

Not really, they're paying the relevant tax for it's usage.

Problem arises when they grow banana's for a year or two then build a condo on the land.

[ukrules]

1 hour ago, The Hammer2021 said:

They are not  talking  about all unused land in the country! Lol.

Yes they are. If someone owns it then they're going to pay tax on it unless it's 'being used' for something.

 

 

[tomazbodner]

8 hours ago, webfact said:

Bananas are one of nine crops allowed to be cited as a plantation eligible for the agricultural land tax rate.

Now I understand why my condo is sitting in the middle of banana plantation... in the city. But they are spreading, and growing bananas on more and more land in this area. In fact they are just clearing some old trees off to plant banana trees...

[tomazbodner]

3 hours ago, KhunBENQ said:

Jomtien somewhere between Chaiyaphruek and Watboon:

Too dark to take photo now but land around me looks very similar, just that it's a bit more green as this was done a year+ ago so there's grass around the trees now.

 

Thailand could easily become biggest banana exporter on the planet if this continues!

[Puccini]

10 hours ago, webfact said:

...the 50-rai plot in question should be valued at a minimum THB600 million...

Where exactly is this particular plot of land valued at a minimum of 12 million Baht per rai?