Thai govt eyes land, property taxes to boost revenue

[webfact]

Govt eyes land, property taxes to boost revenue
By English News



BANGKOK, Oct 22 – The Thai government is mulling a bill on land and property taxes, and revising obsolete taxation laws, the director general of the Fiscal Policy Office (FPO) said today.

In a speech on “The State’s Fiscal and Investment Policy in the Next Five Years,” Somchai Sajjapong said the Finance Ministry was revising Thailand’s tax and fiscal policy structure.

Though the government disagreed with increasing the excise and value added taxes (VAT), he said the two laws would eventually be reviewed in accord with economic factors and domestic consumption – the major source of revenue for infrastructure development.

Thailand’s overall tax base remains rather low compared to many countries, he said, adding that the FPO would press for collection of land and property taxes.

The tax structure was already submitted to Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong who stood firm that the new tax base would not affect people who buy property for housing purposes.

Taxes will be levied on unoccupied and land purchased for speculation, he said.

Mr Somchai said revised laws on fiscal and financial structures would be significant in strengthening Thailand’s competitive edge and giving more flexibility to the private sector.

Regarding the government’s Bt2 trillion investment on infrastructure development, the FPO director general said borrowing would not have an impact on the country’s financial discipline and public debt in the next seven years would not exceed 50 per cent of gross domestic product.

It is necessary that the government creates debt to invest and solve existing problems, he said, insisting that issuing the bill to borrow Bt2 trillion for the mega projects would allow more flexibility in allocating funds to the national budget.

The Bt2 trillion loans bill will go through required legal process and environment impact assessments, and it was endorsed by the National Economic and Social Development Board and the Budget Bureau before the Cabinet’s final approval, he said. (MCOT online news)


-- TNA 2013-10-22

[tomross46]

That is good planning, but you can not tax Alpine Golf Club, and housing development!.

[ratcatcher]

That is good planning, but you can not tax Alpine Golf Club, and housing development!.

They should collect Thaks in Bangkok first.

[Thai at Heart]

Oooooh. Times must be tough if they are prattling on about a property and land tax.

If I can find a hat, I will eat it if any Thai government implements any additional or new land tax. Land is where Thai people wash their money and create their tax free pensions. This practice is not to be trifled with willy nilly, and certainly not to enable building trains, paying out money to farmers or funding Yinglucks shopping sprees.

[thaicbr]

Yep. Abhisit's government planned something similar and PTP took them to task on it.... the difference is Abhisit was bringing the country into the 21st century.... PTP are just skint because of stupid populist policies.

Sent from my phone with the app thingy.

[JoeThePoster]

I think this government wants to be known as a taxin' regime.

[ChrisY1]

That is good planning, but you can not tax Alpine Golf Club, and housing development!.

Or any vacant property owned by SC Asset!

[rametindallas]

Yep. Abhisit's government planned something similar and PTP took them to task on it.... the difference is Abhisit was bringing the country into the 21st century.... PTP are just skint because of stupid populist policies.

Sent from my phone with the app thingy.

What he said

[Ricardo]

And in related news, political-turkeys are about to vote for Christmas as part of a Truth-and-Reconciliation Amnesty-for-Thaksin Bill, in parliament ...

[PhilipCook]

This is a good thing, just wish they wouldn't make exceptions.

[Mitker]

First rice scheme side effects?

[ChiangMaiPigFarmer]

It is time the government raised land taxes!

It almost embarrasing how little I pay in land taxes today on our small farm rice fields.

Taxes could go up 500% and still be very affordable.

If we want the land owner benefits from the govenment we should be willing to pay our fair share of taxes.

[lounger]

Fiscal structures! Sounds like a review of the concept of a house being company owned. In the uk that would be defined as law evasion unless the company is legitimately trading. Big bucks for any government enforcing this as its only farangs use the device to appear Thai owned.Imagine if all company owned property were invedtigated and made to pay a property tax.......

Sent from my GT-I9100 using Thaivisa Connect Thailand mobile app

[Time Traveller]

How about just stop the wasteful spending on ridiculous ideas like the rice scheme. Then they'll find 200 billion baht per year that they didn't have.

It's crazy they give money to rice farmers like this, then talk about taking it back through higher taxes. All these new subsidies and taxes are basically to add extra opportunities for bureaucrats to be involved with corruption along the way.

Land taxes are just a reminder that you don't own that land. You're just renting from the one who owns all of it.

Edited October 23, 2013 by Time Traveller

[winstonc]

It is time the government raised land taxes!

It almost embarrasing how little I pay in land taxes today on our small farm rice fields.

Taxes could go up 500% and still be very affordable.

If we want the land owner benefits from the govenment we should be willing to pay our fair share of taxes.

the first person in human history to be embarrased about how little tax they pay...amazing..bet its still more than any mps.so dont worry yourself too much.no0one else does...

[drdoom6996]

Yep. Abhisit's government planned something similar and PTP took them to task on it.... the difference is Abhisit was bringing the country into the 21st century.... PTP are just skint because of stupid populist policies.

Sent from my phone with the app thingy.

What he said

+1

[rotary]

Hope all this tax stuff does not turn Thailand into a welfare state like the USA is quickly becoming

[hawker9000]

Hope all this tax stuff does not turn Thailand into a welfare state like the USA is quickly becoming

"Becoming"?? Well, the dollar's not quite worthless yet, and some people still actually have real jobs, so I guess there's still room for more.

But getting back to the Land of Scams, once thai politicians begin to realize how much money's really in the welfare racket for them, they'll be lining up for that bandwagon.

[paz]

It is time the government raised land taxes!

It almost embarrasing how little I pay in land taxes today on our small farm rice fields.

Taxes could go up 500% and still be very affordable.

If we want the land owner benefits from the govenment we should be willing to pay our fair share of taxes.

the first person in human history to be embarrased about how little tax they pay...amazing..bet its still more than any mps.so dont worry yourself too much.no0one else does...

No, the 2nd, check Warren Buffet and he pays a little more than the OP.

[bangon04]

It is time the government raised land taxes!

It almost embarrasing how little I pay in land taxes today on our small farm rice fields.

Taxes could go up 500% and still be very affordable.

If we want the land owner benefits from the govenment we should be willing to pay our fair share of taxes.

the first person in human history to be embarrased about how little tax they pay...amazing..bet its still more than any mps.so dont worry yourself too much.no0one else does...

So maybe the best way is to raise taxes for foreigners first. Then if that is successful they can set up a committee to do a study on whether they can extend it to poor thai farmers .

[siampolee]

Taxes will be levied on unoccupied and land purchased for speculation, he said

Nice loophole there.

Buy the land use it erect a few shacks and get ones gardeners or maids family to live there and lo and behold tax liability negated Couple of years down the road sell the land for development and no tax paid.

As a revenue earning measure it's going to be about as effective as a '' A chocolate fireguard.''

[billd766]

It would be interesting if ALL the landowners paid the land tax at the full rates, starting first with ALL the politicians.

Being an on the run criminal fugitive living outsde Thailand with your familyshould NOT be given an exemption.

[Emptyset]

Yep. Abhisit's government planned something similar and PTP took them to task on it.... the difference is Abhisit was bringing the country into the 21st century.... PTP are just skint because of stupid populist policies.

Sent from my phone with the app thingy.

I don't see why PTP would have 'taken them to task on it' when Surapong proposed exactly the same thing under the Samak admin before the Democrats took office? On the contrary, Bangkok Pundit noted bi-partisan support for it: http://asiancorrespondent.com/18158/more-land-tax-talk/

Actually, I was curious so I've looked through all the relevant Thaivisa threads for the last four years or so and can't find any news items that suggest that PTP opposed the Democrats on this. I only see that the exact same law has been discussed seemingly every few months: first Surapong in 2008, then Korn, now this government. Question is, if everyone's wanted it since at least 2008, why hasn't it been implemented? I can only assume there was powerful lobbying by landowners which made PPP, the Democrats and now this government think again. Let's hope it finally gets pushed through this time.

[mrtoad]

They have to raise tax revenue to pay off the Rice Scam, and all the other mess they have managed to create in the last two years. Irrespective, it will be set up in such a way, that the PTP cronies will still be able to exploit it.

[CMTourist]

The rich and powerful will "negotiate" a payment with the revenue department. The middle classes and property owning poor will be the only ones to pay

[Thai at Heart]

It is time the government raised land taxes!

It almost embarrasing how little I pay in land taxes today on our small farm rice fields.

Taxes could go up 500% and still be very affordable.

If we want the land owner benefits from the govenment we should be willing to pay our fair share of taxes.

the first person in human history to be embarrased about how little tax they pay...amazing..bet its still more than any mps.so dont worry yourself too much.no0one else does...

Well, land taxes in Thailand are pitiful. The country's largest asset basically goes un touched.

[tingtongteesood]

Govt eyes land, property taxes to boost revenue their personal bank accounts.

[hellodolly]

It would be interesting if ALL the landowners paid the land tax at the full rates, starting first with ALL the politicians.

Being an on the run criminal fugitive living outsde Thailand with your familyshould NOT be given an exemption.

I was thinking some thing along the same lines. If all property owners had to pay tax Owners would think twice about letting their houses just sit with no renters. They would still be paying tax on it and getting no revenue from it. That they would understand.

Here in Chiang Mai we have condos going up every where some half sold and even more and they haven't even broke the ground yet. If you drive around Chiang Mai you will see deserted buildings all over they don't care it is not costing them money. Tax them and you will see less building and generate more money for the Government.

I know what are they going to do with it but eventually the people will throw them out on there ear or Thaksins ass if you prefer. The next government will still be PTP but they will need help to get it.

[cheshiremusicman]

Hope all this tax stuff does not turn Thailand into a welfare state like the USA is quickly becoming

If you think that the USA is as 'welfare state' try the UK; but NOT if you are born there! THAT would be asking far too much from the politically correct politicians, who will do everything in their power to keep their fat backsides on their parliamentary seats until they retire on their own fat pensions and sod the rest of you!

[rotary]

Hope all this tax stuff does not turn Thailand into a welfare state like the USA is quickly becoming

"Becoming"?? Well, the dollar's not quite worthless yet, and some people still actually have real jobs, so I guess there's still room for more.

But getting back to the Land of Scams, once thai politicians begin to realize how much money's really in the welfare racket for them, they'll be lining up for that bandwagon.

Look at the US$ against the Canadian dollar over the last decade. I have noticed over the last few years there is no such thing as a "used" $100 bill. If I get a bundle they all have the "strap" on them and are all unused. I consider this to be a sign they are running the printing presses full speed ahead without thinking. The real unemployment rate is around 20% in the USA if you consider people who have just quit looking and take into account people who are now part time due to Obamacare. No one believes employment figures the US government puts out. I am not so sure the USA is on such sound footing finance wise but before they issue a press release they would have to discuss that with China I think.

Edited October 24, 2013 by rotary