There Should Be Property Taxes In Thailand

[kkf123]

In many places in the USA, you pay 2-3% of the value of the property you own to something called 'property tax'. So depending on where you live, if you own a $1,000,000 home or condo, you would expect to pay $20,000-$30,000 a year to this specific tax. We also have income taxes which for people making over $250,000 is in the 30% range and we also have state taxes. And then when we buy stuff in stores we have a sales tax, the equivalent of VAT.

I noticed that many farang on this forum are quite distraught about the living conditions and opportunities of rural wife's families. The main conclusion to why these people are doing so poorly is that the rich have a monopoly on wealth, government and corruption and are denying the Isaan and other poor rural peoples an equal opportunity to succeed in life.

That is why I propose that the Thai government should drastically increase taxes across the board, following the United States and Europe's lead. This money should then be used for social programs to help the poor people.

Are you with me on this?

[tom yum goong]

with a lack of transparency, accountability and rampant corruption increasing taxes is only going to make those in power richer and will have little if any benefit for the country's poor.

get rid of corruption and you will see a huge improvement in the quality of life for everyone in Thailand. of course theres more chance snow in Phuket than that ever happening.

[lazeeboy]

with a lack of transparency, accountability and rampant corruption increasing taxes is only going to make those in power richer and will have little if any benefit for the country's poor.

get rid of corruption and you will see a huge improvement in the quality of life for everyone in Thailand. of course theres more chance snow in Phuket than that ever happening.

not a chance this would happen ,it would make them poorer .

[cmsally]

Yes, absolutely why not, lets increase taxes, then the "govt." can buy another submarine and another aircraft carrier.

If they have a few hundred billion baht for their next military budget, presumably they have more than enough to help the poor.

[cm-happy]

Good idea, but this is Thailand. In the States we get well administered local gov't, professional police protection and law enforcement. Fire protection. EMS, locally administered school systems for our property taxes. would we not expect to get the same in Thailand?

But since foreigner cannot own property perhaps imposing local property taxes might change that. If farang property then double, triple or quadruple the valuation. Might be a big incentive for Thais to change the law about property ownership.

[sweetchariot]

Is this not why most of left our home countries?

Try Vietnam, they are still communists.

[Naam]

That is why I propose that the Thai government should drastically increase taxes across the board, following the United States and Europe's lead. This money should then be used for social programs to help the poor people.

Are you with me on this?

i will give you my answer once those bad aliens set you free again

[plasticpig]

In many places in the USA, you pay 2-3% of the value of the property you own to something called 'property tax'. So depending on where you live, if you own a $1,000,000 home or condo, you would expect to pay $20,000-$30,000 a year to this specific tax. We also have income taxes which for people making over $250,000 is in the 30% range and we also have state taxes. And then when we buy stuff in stores we have a sales tax, the equivalent of VAT.

I noticed that many farang on this forum are quite distraught about the living conditions and opportunities of rural wife's families. The main conclusion to why these people are doing so poorly is that the rich have a monopoly on wealth, government and corruption and are denying the Isaan and other poor rural peoples an equal opportunity to succeed in life.

That is why I propose that the Thai government should drastically increase taxes across the board, following the United States and Europe's lead. This money should then be used for social programs to help the poor people.

Are you with me on this?

No.

The poor would never see 1 baht of it.

[Jingthing]

How about this. First, let us buy a house with land. Second, talk about property taxes.

[chanchao]

Well, there's tax on purchasing land... Which is usually calculated and charged with the creativity and beauty of Mozart's greatest symphonies.

the rich have a monopoly on wealth

Ain't that the truth. In the same way that water has a near-monopoly on being wet.

Anyway, I never thought I'd see the day that someone on this forum would actually advocate higher taxes.

Edited December 7, 2007 by chanchao

[Mosha]

This money should then be used for social programs to help the poor people.

The lights are on but there's nobody home.

Nanoo nanoo.

[tuky]

I am under the impression that there is a property tax, and when I read about this I remember it being similar to that of the US, ie 3% or something. I also remember reading in the same paragraph that the tax is rarely collected.

I will do my best to remember where I read that, but to be honest I am having trouble remembering what I had for breakfast, oh hang on I didn't have breakfast. But seriously I am pretty sure this tax already exists, just the collection of the tax is lax so we never hear about it.

[Mosha]

I am under the impression that there is a property tax, and when I read about this I remember it being similar to that of the US, ie 3% or something. I also remember reading in the same paragraph that the tax is rarely collected.

I will do my best to remember where I read that, but to be honest I am having trouble remembering what I had for breakfast, oh hang on I didn't have breakfast. But seriously I am pretty sure this tax already exists, just the collection of the tax is lax so we never hear about it.

A google search found

Are There Property Taxes in Thailand?

There are no property taxes as such in Thailand that are exactly equivalent to the property taxes in the west, however, the most comparable taxes on properties in Thailand are the Land Tax and the Structures Usage Tax. The Land Tax levied on land is so miniscule, that in practice the body charged to collect it, rarely bothers to do so, and if they do, they usually wait several years until the amount accumulates. The second tax, the Structures Usage Tax, relates to buildings, is collected by the municipal office or district office, and is only applied to properties used for commercial purpose.

[Plus]

Who is going to introduce this tax? Same people who are supposed to be paying it? Snoball's chance in hel_l. Only when "poor" will come up with their own ideas instead of relying on the rich to throw them extra food.

[Farma]

Take a look at http://bia.serverbox.net/003.html

Chapters 12 - 16 give the rates of taxation.

[dave111223]

At least it would stop people living in a house that they can't afford to maintain. You see people in houses/shops that look like total sh*t but house has been in the family for years.

Maybe they would sell it someone who appreciates the property's true value.

All the time you see a house in a prime location and could sell for a ton, and then you see the residents sat out front in their whitey tightys watching the last chip of paint dangling from the walls.

Overall i dislike taxes, but i find property tax is one of the least offensive as the money goes back into your own local community (schools, police etc..), opposed to income tax etc... (which goes who knows where)

But as many have said the money would go right into someones pocket so the point is moot.

Edited December 7, 2007 by dave111223

[mr_hippo]

In many places in the USA, you pay 2-3% of the value of the property you own to something called 'property tax'. So depending on where you live, if you own a $1,000,000 home or condo, you would expect to pay $20,000-$30,000 a year to this specific tax. We also have income taxes which for people making over $250,000 is in the 30% range and we also have state taxes. And then when we buy stuff in stores we have a sales tax, the equivalent of VAT.

I noticed that many farang on this forum are quite distraught about the living conditions and opportunities of rural wife's families. The main conclusion to why these people are doing so poorly is that the rich have a monopoly on wealth, government and corruption and are denying the Isaan and other poor rural peoples an equal opportunity to succeed in life.

That is why I propose that the Thai government should drastically increase taxes across the board, following the United States and Europe's lead. This money should then be used for social programs to help the poor people.

Are you with me on this?

Toto, or what ever your name is - we are not in Kansas! Please think before typing! What is the first thing to happen here if taxes are drastically increased? That's right - people's spending power is reduced. What will be the second thing to happen? People will want more money - pay rises. And the third? Companies will increase their prices to pay for the wage increases. Then what? People will want more money - do you see a pattern emerging?

Entry for "Quote of the year" - "The main conclusion to why these people are doing so poorly is that the rich have a monopoly on wealth.." Well if the poor had the monopoly of wealth, they would not be poor!

[GuestHouse]

The OP has correctly observed Thailand's imbalance in wealth but incorrectly attributes this to taxes.

It is true that one of the main purposes of taxes in the developed world is 'Distribution of the National Wealth' but it is not taxes that distribute wealth it is 'Policies'.

But 'policies' are in themselves useless without the missing ingredient (missing in Thai society) a 'social contract' which places welfare of the nations people at its heart. That is not to say Thailand does not have a 'Social Contract' it undoubtedly does, though to discuss it and question it would be risking a breach of ThaiVisa rules.

Suffice it to say that if Thailand raised taxes (any taxes) then the people who would benefit from the tax rise would be the already wealthy, and has has been pointed out the military.

It is also an observable truth that there is at least one person in Thailand who consistently asks for those in power and with wealth to work and sacrifice their own personal best interests to improve the welfare of all Thais.

But alas - Love and obedience are demonstrably seperable.

[TokyoT]

I am all in favor of a property tax in Bangkok, but not in the rural areas. I think anyone who thinks money collected by the central government will then be distributed to the rural poor all around the country are kidding themselves.

So, why am I in favor of a property tax in Bangkok? Take a look around pretty much any area of Bangkok and one will see valuable property not being fully utilized. And I think a major reason for this is the amount of property that some people continue to accumulate and then sit on it. Why? Because they see the property as adding to the family wealth (which is true), but then there is insufficient reason for them to then develop or do something with the land. I know several Thai’s that have land and condos that have turned down offers to develop the land or rent the condo because the offer did not live up to their expectations. I think if there was some form of minimal property tax they would be less likely to sit and do nothing, allowing the land to sit un or under developed, or the condo to sit empty. The tax being due every month/ quarter would motivate them to either do something with the land/condo or sell it. Thereby helping to move the resource (land) around and into the hands of people that have some kind of vision in regard to how to utilize the land to create income and bring more to the economy.

Is this likely to happen? H*ll no – many of the folks holding the land and sitting on it are the folks making the rules. They are much more likely to be in favor of sales taxes, and VAT taxes, rather than something that taxes their wealth.

I think the main thing that needs to be done to help the rural poor is to improve the educational system.

[GuestHouse]

We should also note that while it is necessary to compare Thailand with other nations in order to get a feel of how Thailand is dong in respect of other nations and is of course entirely natural to make comparisons with our home nations. I'm not sure that the United states is a good example.

The US does not do so well looking after its own poor and makes pitiful contribution to the welfare of the desperately poor around the world (which the US derives so many benefits from).

However, its not all bad news, we could all of us learn something from the US in terms of 'Public Service' and, for the rich there is the lesson of 'public legacy'. Something like 27% of all the wealth in US Wills and testaments is donated to 'Public and Social foundations' I can't see that happening anywhere else, certainly not in Thailand.

We should also note that the UK, which has seen a flattening of the wealth band, is now facing a two tier society of haves and have-nots based on property ownership.

There is a lot wrong with Thailand's distribution of wealth and assets, but there is a lot wrong with most of the alternatives too.

[wolfmanjack]

There was an article in the Bangkok Post where they said the government was going to implement a real estate tax and the rate for unused land was going to be double the rate for land in use. This would apply for houses that are sitting empty also.

[lannarebirth]

It seems to me that one of the only things that millions of poor rural farmers own, is their land. If taxes were levied on the land, perhaps a great percentage of the ooor would be unable to pay and risk losing the only thing they own outright.

[Spee]

That is why I propose that the Thai government should drastically increase taxes across the board, following the United States and Europe's lead. This money should then be used for social programs to help the poor people.

Are you with me on this?

Not no, but h*ll no!

Government social programs funded by taxpayer dollars have been predictable incredible failures everywhere they have been tried. As an example, in America the federal welfare program destroyed the black middle class that grew and prospered during the 30's, 40's & 50's. Instead of helping people, it has done the opposite and doomed many of the last 3 or 4 generations to a life of poverty, lack of prosperity and social isolation on the government dole.

There's nothing wrong with a certain amount of taxation for basic government functions like national defense, providing for civil order, etc. But beyond that, what works best for people is minimal government intervention and freedom to run their lives and spend their money as they see fit rather than as the government sees fit.

I also agree with other posters. If we as foreigners and immigrants are going to shoulder a part of some future tax burden in Thailand, then there has to be some rights that go with it. As someone else said, the right to be established as a permanent resident rather than a year to year immigrant would be a start.

Same goes for the collection costs versus the amount of tax to be collected. What value is there in taxing some remote villager 1k-2k when they may only make 20k-40k in a year? There isn't much net for the government after collection costs but still a lot of money for someone in that situation to have to pay.

[Jingthing]

Spee, the trouble with US taxation is the vast majority of the burden (based on percentage of wealth) falls on the poor and middle class. The loopholes are all for the rich and corporations. This is not a good model for Thailand or any country to mirror. Everyone hates taxes, even liberals like me, but if they are needed, at least they should be fairly applied, and there lies the rub.

Edited December 7, 2007 by Jingthing

[Heng]

with a lack of transparency, accountability and rampant corruption increasing taxes is only going to make those in power richer...

Woo hoo!

[WongKarWai]

Its funny how no one, or not many, came out and said "I don't want to support poor people, let them make their own way"... Instead, everyone pointed to government corruption... Yeah, yeah, so if the government wasn't corrupt you would be for paying 3% in property tax every year?... Doubtful.

[WongKarWai]

only women and children, but not men?

[Spee]

the trouble with US taxation is the vast majority of the burden (based on percentage of wealth) falls on the poor and middle class.

Not trying to thread hijack, but your statement is total horsesh*t.

The US Internal Revenue Service website posts the numbers:

- The top 1% of the wage earners pay 36.89% of all federal income tax.

- The top 25% of all wage earners pay 84.6% of all federal income tax.

- The top 50% of all wage earners pay 96.7% of all federal income tax.

These are the IRS's published facts. This is not something that can be disputed.

Put another way, in America:

- The upper class pays 1/3 of all federal taxes, way way more than their fair share.

- The upper middle class pays more than their fair share.

- The lower middle class pays less than their fair share.

- The lower class pays way way less than their fair share.

- And the poor essentially don't pay anything. (oh, and by the way, neither do the 15 million foreign nationals believed to be working in the country illegally)

Just like Hillary, all mouth and no substance.

Apologies to everyone for going OT.

[endure]

This thread is not going to discuss US politics. Clear?

[Heng]

The parallel is that the well to do "contribute" more than their fair share the world over, if it's not in personal income taxes, then it's in nearly unavoidable corporate and VAT/sales taxes, in value added products + services to the economy through their businesses, direct wages to their employees, etc. Increased property taxes would no more be a redistribution of wealth (or property) than increasing luxury taxes and thinking that it would allow the poor better access to luxury goods.