Tax Reduction To Be Offered To New Homebuyers In 2009

[george]

Tax reduction to be offered to new homebuyers in 2009

BANGKOK: -- Realising that the Thai economy is going to be hard hit, newly-appointed Finance Minister Korn Chatikavanij said Wednesday that his ministry plans to launch measures to boost the property sector by allowing home buyers in 2009 to deduct their personal income taxes to over Bt200,000 annually, up from Bt100,000 now, from interest paid on home loans.

The measures are expected to be introduced after the government has presented its policy statement to Parliament, scheduled to take place on December 29 and 30, said Mr. Korn.

He said the increase in tax incentives would be offered to those who buy new houses in 2009 only and house purchasers with prices of Bt7-8 million would enjoy the benefit.

A similar incentive but with lesser tax deduction may be given to home buyers after 2009, he said.

On unemployment problem in which it is estimated that up to about one million employees would be laid off next year, Mr. Korn said the government may provide training to the unemployed to help them find jobs in future.

The government also plans to create new jobs to help cushion the impact of the problem, he added.

-- TNA 2008-12-24

[oceano]

So here we are...only very rich people can have benefit...if this is the new ways...God help us.

[stoneman]

Tax reduction to be offered to new homebuyers in 2009

BANGKOK: -- Realising that the Thai economy is going to be hard hit, newly-appointed Finance Minister Korn Chatikavanij said Wednesday that his ministry plans to launch measures to boost the property sector by allowing home buyers in 2009 to deduct their personal income taxes to over Bt200,000 annually, up from Bt100,000 now, from interest paid on home loans.

-- TNA 2008-12-24

Over the years, this has been a common ploy ...announcing a "planned" event and then nothing ever happens...but it makes the rich people feel good that they were being thought about..

Stoneman

[TAWP]

New homes/houses have to be built = creates/maintains jobs.

Jobs doesn't grow on tree's...unless you are growing apples.

[Thai at Heart]

And the first bit of policy with flesh on the bones helps people buying houses over 8mn baht and helps out constructors who bit off more than they can chew.

Obviously the property market is facing a hammering, and a nice little benefit to the wealthy. I thought Korn was smarter and more subtle than that.

[samgrowth]

This only benefit the urban people in Bangkok and other big cities. I am sure PAD will be very happy.

Most farmers don't buy house. They build their on their land. They don't benefits.

[blaze]

New homes/houses have to be built = creates/maintains jobs.

Jobs doesn't grow on tree's...unless you are growing apples.

A libertarian who welcomes government interference with the natural machinations of the free market- what next! Agricultural subsidies?

[TAWP]

New homes/houses have to be built = creates/maintains jobs.

Jobs doesn't grow on tree's...unless you are growing apples.

A libertarian who welcomes government interference with the natural machinations of the free market- what next! Agricultural subsidies?

Thanks for not reading carefully enough.

I explained the mechanics behind the decision, I didn't write that I supported it.

Next!

[oceano]

Yes but how many people can/want( really someone in this moment want spend in thailand more than 150.000 euro??) buy house for more than 150.000 Euro?

The 90% of the market is around 2-3 milion for one house so only the elite can benefit and the 90% of thai people and farang dont.

so more work for who?

Edited December 24, 2008 by oceano

[TAWP]

Yes but how many people can/want( really someone in this moment want spend in thailand more than 150.000 euro??) buy house for more than 150.000 Euro?

The 90% of the market is around 2-3 milion for one house so only the elite can benefit and the 90% of thai people and farang dont.

so more work for who?

Are you asking who builds the houses?

[Thai at Heart]

Right now, no more work for anyone, just trying to move the stock of unsold oversized houses out of the hands of the developers and saving the prospect of banks losing pots of cash. People aren't stupid, they know that the cost of construction materials has plummeted in the last few months so build your own looks very attractive meanwhile the developers are screaming.

A rule like this will only stimulate building in a year or two. Would most developers start large new projects in the coming months?

[MJo]

This only benefit the urban people in Bangkok and other big cities. I am sure PAD will be very happy.

Most farmers don't buy house. They build their on their land. They don't benefits.

Does the farmers pay tax on their income? I don't think so...

[henryalleman]

Its a very good decision, it will create a lot of jobs in the building industry, also the plan for re-schooling for laid of employees is an excellent plan.

Both are already implemented with great success in the EU.

[dotcom]

"The government plans to create jobs." He's been listening to Nobama. LOL.

I predict that will work real well.

[Plus]

I guess it could work only if it's meant as a stimulus measure - first get those with plenty of money to start spending. That would create jobs, spur economic activity and set the right mood for those lower on the ladder to start spending, too.

Perhaps giving tax brakes for cheaper houses won't create much interest 'cos people on the budget aren't prepared to spend anyway.

Perhaps construction industry can absorb jobs lost at factories.

Would be a brilliant move if it works. There aren't many sources left to tap for extra spending - govt budget is in the red, private consumption is low, why not get the rich to spend what they have squirelled away?

[bkkjames]

Its a very good decision, it will create a lot of jobs in the building industry, also the plan for re-schooling for laid of employees is an excellent plan.

Both are already implemented with great success in the EU.

Well seeing as these new qualified new homes are only in housing estates, it appears that only one's to benefit are really the LH's, Sansiri's and others of that ilk. I don't really think anyone who is contemplating buying a 8 million baht up house will be spurred into action on it because of the minimal tax break offered by this.

Purely and simply it appears to be nothing more than a way to try and prop up lagging property stocks.

[bkkjames]

Its a very good decision, it will create a lot of jobs in the building industry, also the plan for re-schooling for laid of employees is an excellent plan.

Both are already implemented with great success in the EU.

Well seeing as these new qualified new homes are only in housing estates, it appears that only one's to benefit are really the LH's, Sansiri's and others of that ilk. I don't really think anyone who is contemplating buying a 8 million baht up house will be spurred into action on it because of the minimal tax break offered by this.

Purely and simply it appears to be nothing more than a way to try and prop up lagging property stocks.

take a look at the stock prices of the leading housing players on the stock market today all up 2-4 percent - surprise surprise

[Gravelrash]

New homes/houses have to be built = creates/maintains jobs.

Jobs doesn't grow on tree's...unless you are growing apples.

Yes No doubt the Cambodian and Burmese workers will be delighted they may keep their jobs.

[Crushdepth]

So here we are...only very rich people can have benefit...if this is the new ways...God help us.

Well low income earners in Thailand *don't pay income tax*, do they? So it's *not possible* to include them in the tax break, is it?

I know, it's a conspiracy...

Edited December 25, 2008 by Crushdepth

[hardy1943]

This sounds like an old Bush tax cut, fore super wealthy only

[samgrowth]

This is an indirect thank you payment directed for the PAD supporters to shut down the <deleted> airports.

Great work Korn and Mark.

Just when I need it.

[bkkjames]

So here we are...only very rich people can have benefit...if this is the new ways...God help us.

Well low income earners in Thailand *don't pay income tax*, do they? So it's *not possible* to include them in the tax break, is it?

I know, it's a conspiracy...

and they don't buy 10 million baht houses either

[Artisi]

So here we are...only very rich people can have benefit...if this is the new ways...God help us.

Well low income earners in Thailand *don't pay income tax*, do they? So it's *not possible* to include them in the tax break, is it?

I know, it's a conspiracy...

and they don't buy 10 million baht houses either

Many can't afford and therefore don't buy any house.

[MyphuketLife]

New homes/houses have to be built = creates/maintains jobs.

Jobs doesn't grow on tree's...unless you are growing apples.

Not jobs for the Northern servants, infact most jobs in building goes to ........ Burma workers....

[MyphuketLife]

Its a very good decision, it will create a lot of jobs in the building industry, also the plan for re-schooling for laid of employees is an excellent plan.

Both are already implemented with great success in the EU.

Well seeing as these new qualified new homes are only in housing estates, it appears that only one's to benefit are really the LH's, Sansiri's and others of that ilk. I don't really think anyone who is contemplating buying a 8 million baht up house will be spurred into action on it because of the minimal tax break offered by this.

Purely and simply it appears to be nothing more than a way to try and prop up lagging property stocks.

take a look at the stock prices of the leading housing players on the stock market today all up 2-4 percent - surprise surprise

Now the real question, who owns allot of those stocks? I don't know, but I wonder how many in this new government have large amounts of stocks in these companies?

Edited December 26, 2008 by MyphuketLife