Thai reform urged on inheritance, property taxes

[webfact]

REFORM
Reform urged on inheritance, property taxes
The Nation

BANGKOK: -- Former finance minister Korn Chatikavanij has recommended that the military government undertake ambitious reform of property and inheritance tax, which had been impossible to do under normal political circumstances.

Such tax reform, once accomplished, would not only help raise substantial revenue for the government but would also create a more equitable society, he said.

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

Apart from further reform of the value-added or capital-gains taxes, Korn also signalled his support for the National Council for Peace and Order's attempt to revamp state enterprises through the recent appointment of a so-called superboard.

The superboard is authorised to recommend policies, management and development plans for all state enterprises. It is also empowered to supervise and follow up the performance of state enterprises to ensure effectiveness and efficiency among other goals. The board members include financiers, businesspeople and lawyers.

There are about 57 state enterprises with combined assets of Bt5 trillion. However, Korn said both he and Somkid Jatusripitak, also a former finance minister, had found it difficult to make the state enterprises more transparent or efficient in spite of their huge financial role in the economy.

As for the appointment of Piyasvasti Amranand, a former energy minister and ex-president of Thai Airways International, as a board member of PTT, Korn said he had no doubts about his credentials and qualifications because Piyasvasti was one of the country's top energy experts.

He said Piyasvasti was able to turn around Thai Airways during his tenure before his untimely resignation, and his task at PTT would not focus on profitability because the energy giant is already profitable, but to improve its transparency and the fairness of its trading practices.

On Monday the three new directors on PTT's board - Piyasvasti, Pornchai Rujiprapha, a former permanent secretary of the Energy Ministry, and Kurujit Nakornthap, a former deputy permanent secretary of the ministry - who were appointed by the junta to replace those who had resigned, called a press conference to clarify their qualifications, after some opposition had been voiced by some non-governmental organisations.

All three insisted that they would work with transparency and for the good of the country.

Source: http://www.nationmultimedia.com/business/Reform-urged-on-inheritance-property-taxes-30237522.html

-- The Nation 2014-07-02

[noitom]

They can't figure out a way to make 57 state enterprises more transparent. But, he says, they can finish it in a week. So we have to assume that good old Korn would suggest by passing transparency since he can't figure it out. Based on that news, he appears to be a strong candidate to be put up for election in a year with the military junta's "backing."

[Local Drunk]

Yeah baby I'm the taxman...

[chainarong]

Reforms needs to be done right across the board , not a bit here and there , now that the dust has settled on the Thai political situation, unless the Junta gets outside expert advice, I can see just another Thai attempt at re-arranging the chairs on the Thaitanic, also players that I thought would keep their mouths shut are starting to Pop up again and voice their views , one would have thought they had done enough damage.

[ramrod711]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

I don't think most Thai people could afford to pay property taxes on their homes but taxes on speculative land would be a good thing. A lot of land is bought and held for years by rich people who have inside knowledge of government and private projects. Holding land in strategic locations stifles growth, if it isn't being used for agriculture and it is more than one rai, tax it.

[buddy]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

I don't think most Thai people could afford to pay property taxes on their homes but taxes on speculative land would be a good thing. A lot of land is bought and held for years by rich people who have inside knowledge of government and private projects. Holding land in strategic locations stifles growth, if it isn't being used for agriculture and it is more than one rai, tax it.

Agree.

At Nana Skytrain station in Bangkok near Pacific place building (Soi 8 side) is a large piece of land right on Sukhumvit road that has been overgrown and used as a rubbish dump for at least 10 years as i know it.

It is in a prime downtown location that could be put to good use for the benefit of the area.

Either a bank is holding on to it, it is part of a property company's "Land Bank" or it is privately owned.

A tax on speculative land might be the motivation to develop this land for the benefit of the area.

[zydeco]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

I don't think most Thai people could afford to pay property taxes on their homes but taxes on speculative land would be a good thing. A lot of land is bought and held for years by rich people who have inside knowledge of government and private projects. Holding land in strategic locations stifles growth, if it isn't being used for agriculture and it is more than one rai, tax it.

Property taxes do eventually result in taxing people out their homes. Once it starts, it doesn't stop. And nobody makes fine distinctions in the world of "pay your fair share."

[JRSoul]

They can't figure out a way to make 57 state enterprises more transparent. But, he says, they can finish it in a week. So we have to assume that good old Korn would suggest by passing transparency since he can't figure it out. Based on that news, he appears to be a strong candidate to be put up for election in a year with the military junta's "backing."

Tom, if you read the OP with a little more care, you might realise that "they could finish it in a week" comment was related to a completely different subject to state enterprise transparency. Bile blindness?

[JRSoul]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

I don't think most Thai people could afford to pay property taxes on their homes but taxes on speculative land would be a good thing. A lot of land is bought and held for years by rich people who have inside knowledge of government and private projects. Holding land in strategic locations stifles growth, if it isn't being used for agriculture and it is more than one rai, tax it.

Property taxes do eventually result in taxing people out their homes. Once it starts, it doesn't stop. And nobody makes fine distinctions in the world of "pay your fair share."

No fine distinction required, merely a minimum value figure for tax to be applied.

[smutcakes]

Korn is one of the first names i would have on the list of people to be recruited under the NCPO if i was the boss.

[rametindallas]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

[rametindallas]

They can't figure out a way to make 57 state enterprises more transparent. But, he says, they can finish it in a week. So we have to assume that good old Korn would suggest by passing transparency since he can't figure it out. Based on that news, he appears to be a strong candidate to be put up for election in a year with the military junta's "backing."

Care to compare Korn's performance/experience to Kittirat's performance/experience as Minister of Finance?

[rametindallas]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

I don't think most Thai people could afford to pay property taxes on their homes but taxes on speculative land would be a good thing. A lot of land is bought and held for years by rich people who have inside knowledge of government and private projects. Holding land in strategic locations stifles growth, if it isn't being used for agriculture and it is more than one rai, tax it.

Agree.

At Nana Skytrain station in Bangkok near Pacific place building (Soi 8 side) is a large piece of land right on Sukhumvit road that has been overgrown and used as a rubbish dump for at least 10 years as i know it.

It is in a prime downtown location that could be put to good use for the benefit of the area.

Either a bank is holding on to it, it is part of a property company's "Land Bank" or it is privately owned.

A tax on speculative land might be the motivation to develop this land for the benefit of the area.

That piece of property just sold about six or eight years ago and set a record, at the time, for land price in Bangkok. Maybe the land cost so much they couldn't afford to build, or the construction deal fell through, or some bureaucrat was holding them up for ransom. Any development in this area will just lead to more congestion; both people and traffic. this is not an area in need of development. Soi 8 has probably doubled in value in the last ten years.

[binjalin]

well there appears to be progress it must be said

[rametindallas]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it. Korn said with the powers it has, the [current] military government could finish it within a week,.

I don't think most Thai people could afford to pay property taxes on their homes but taxes on speculative land would be a good thing. A lot of land is bought and held for years by rich people who have inside knowledge of government and private projects. Holding land in strategic locations stifles growth, if it isn't being used for agriculture and it is more than one rai, tax it.

Property taxes do eventually result in taxing people out their homes. Once it starts, it doesn't stop. And nobody makes fine distinctions in the world of "pay your fair share."

There is currently no tax on 'rental' property so landlords don't have that expense to pass on to their tenants. Most places in the US have a 'homestead exemption' for your primary residence and full taxes on second homes and other properties.

[Prbkk]

That parcel of land at Nana is symptomatic of the bigger problem: speculation in land resulting in inconvenience, poorly utilised resources, in this case ( given the squalor of the site) a threat to public health. The owners should be forced to develop it, sell it to someone who does want to develop it, or have it acquired by the govt for public space. The owners could build something very nice in Dehli with the $$$ from the sale

[Eric Loh]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Good try. In fact I felt disgusted with Korn trying to do another hookwinking and try to put blame on others and not himself . Let's recalled May 12 2009 when Korn was the FM and he was reported to say that he was submiting draft legislation for inheritance, land and property tax for the cabinet approval. So what happen during his adminstration in passing the legislation. Simply the Dem government fear offending the many wealthy and rich landowners and supporters

[rametindallas]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Good try. In fact I felt disgusted with Korn trying to do another hookwinking and try to put blame on others and not himself . Let's recalled May 12 2009 when Korn was the FM and he was reported to say that he was submiting draft legislation for inheritance, land and property tax for the cabinet approval. So what happen during his adminstration in passing the legislation. Simply the Dem government fear offending the many wealthy and rich landowners and supporters

What happened? A democratically elected Democrat government was side-tracked by a rent-a-mob of Red Shirts who were paid for by a former PM who couldn't let go of power and who tried to use that mob to stage a 'soft coup'. You know that. Everybody knows that. Why are you asking dumb questions?

[robblok]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Good try. In fact I felt disgusted with Korn trying to do another hookwinking and try to put blame on others and not himself . Let's recalled May 12 2009 when Korn was the FM and he was reported to say that he was submiting draft legislation for inheritance, land and property tax for the cabinet approval. So what happen during his adminstration in passing the legislation. Simply the Dem government fear offending the many wealthy and rich landowners and supporters

Korn was in a weak coalition government YL was in a strong PTP government. As usual YL (Taksin) shows his colors.

But property tax is a good thing just set a threshold that is not taxed like 2 mil baht or so then the poor won't have a problem the rest will have to pay a bit. Sounds like a good system to me that takes money from the real rich, then of course this money has to be used good.

[Robby nz]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Good try. In fact I felt disgusted with Korn trying to do another hookwinking and try to put blame on others and not himself . Let's recalled May 12 2009 when Korn was the FM and he was reported to say that he was submiting draft legislation for inheritance, land and property tax for the cabinet approval. So what happen during his adminstration in passing the legislation. Simply the Dem government fear offending the many wealthy and rich landowners and supporters

Bad try.

The draft legislation on land reform went to the Council of State and was vetted by them, as is normal procedure.

It was then on the table for debate when the house was dissolved and was dropped by the Yingluck Government.

There were also draft education reforms that followed on from the increase of free education from 12 to 15 which were also dropped in favor of tablets.

[fab4]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Good try. In fact I felt disgusted with Korn trying to do another hookwinking and try to put blame on others and not himself . Let's recalled May 12 2009 when Korn was the FM and he was reported to say that he was submiting draft legislation for inheritance, land and property tax for the cabinet approval. So what happen during his adminstration in passing the legislation. Simply the Dem government fear offending the many wealthy and rich landowners and supporters

What happened? A democratically elected Democrat government was side-tracked by a rent-a-mob of Red Shirts who were paid for by a former PM who couldn't let go of power and who tried to use that mob to stage a 'soft coup'. You know that. Everybody knows that. Why are you asking dumb questions?

And why are you using the ridiculously "dumb" excuse that the "democratically elected" (with the help of their military friends) abhisit government could not do anything worthwhile in their tenure because, apparently, they were "side-tracked by a rent-a-mob of Red Shirts" for the entire 2 years, 7 months, 19 days they were in power with not a moment to spare to pass legislation?

Edited July 2, 2014 by fab4

[Pimay1]

Inheritance tax is one of the most egrerious taxes there is in a country where the tax has already been paid on the money, property ect that is to be inherited. Simple double taxation. But in Thailand there is a good possibility that no taxes have been paid on anything inherited. If that be the case then I would support it.

[fab4]

If the junta truly want to bring happiness to the Thai people property tax is not the way to go. Once the die has been cast the number of people "caught in the net" will gradually increase as the "ceiling" is set lower and lower as a convenient way of raising money.

Bearing in mind the increasing economic inequality between rich and poor (not only in this country but worldwide) the fairest tax would be on land, not property. However this is not likely to happen while this situation exists

The Sirivadhanabhakdi family has emerged as Thailand's largest landlord, with 630,000 rai, according to a survey.

Trailing it were the Chearavanonts, who own a combined 200,000 rai.

Coming third was United Palm Oil Industry Plc, a palm oil producer with large plantations in Krabi and Surat Thani, with 44,400 rai.

The Crown Property Bureau came fourth, with 30,000 rai.

The survey was conducted by Local Action Links (Local Act), a non-government organisation focusing on strengthening farmers' networks, especially landless ones.

Among politicians, Amnat Klangpa of Pheu Thai led the group, with 2,030 rai, followed by Banharn Silpa-archa of Chartthaipattana (2,000 rai) and Sanoh Thienthong of Pheu Thai (1,900 rai).

Others are Adisak Pokskulnanont (1,197 rai), Tossaporn Thepabut (Democrat, 1,095 rai), Attawich Suwanpakdee (Democrat, 1,095 rai), Suchon Champoonot (Pheu Thai, 1060 rai), Chai Chidchob (Bhumjaithai, 854 rai) and Monthon Kraiwatnusorn (Pheu Thai, 755 rai).

Some 15.9 million of Thais owned land of whom 15.68 million were individuals and 212,000 juristic persons or companies.

Survey based on title deeds at the Land Department.

[robblok]

Inheritance tax is one of the most egrerious taxes there is in a country where the tax has already been paid on the money, property ect that is to be inherited. Simple double taxation. But in Thailand there is a good possibility that no taxes have been paid on anything inherited. If that be the case then I would support it.

I agree about inheritance tax being one of the worst. Property tax is one thing.. but inheritance tax an other. The things i have to do for clients and myself so I don't have to pay over money received from my parents. It is crazy, I hope Thailand does not follow this road.

[robblok]

If the junta truly want to bring happiness to the Thai people property tax is not the way to go. Once the die has been cast the number of people "caught in the net" will gradually increase as the "ceiling" is set lower and lower as a convenient way of raising money.

Bearing in mind the increasing economic inequality between rich and poor (not only in this country but worldwide) the fairest tax would be on land, not property. However this is not likely to happen while this situation exists

The Sirivadhanabhakdi family has emerged as Thailand's largest landlord, with 630,000 rai, according to a survey.

Trailing it were the Chearavanonts, who own a combined 200,000 rai.

Coming third was United Palm Oil Industry Plc, a palm oil producer with large plantations in Krabi and Surat Thani, with 44,400 rai.

The Crown Property Bureau came fourth, with 30,000 rai.

The survey was conducted by Local Action Links (Local Act), a non-government organisation focusing on strengthening farmers' networks, especially landless ones.

Among politicians, Amnat Klangpa of Pheu Thai led the group, with 2,030 rai, followed by Banharn Silpa-archa of Chartthaipattana (2,000 rai) and Sanoh Thienthong of Pheu Thai (1,900 rai).

Others are Adisak Pokskulnanont (1,197 rai), Tossaporn Thepabut (Democrat, 1,095 rai), Attawich Suwanpakdee (Democrat, 1,095 rai), Suchon Champoonot (Pheu Thai, 1060 rai), Chai Chidchob (Bhumjaithai, 854 rai) and Monthon Kraiwatnusorn (Pheu Thai, 755 rai).

Some 15.9 million of Thais owned land of whom 15.68 million were individuals and 212,000 juristic persons or companies.

Survey based on title deeds at the Land Department.

I am genuinely confused why a property tax would not be something a red cheerleader wants. I know I see it as a fair tax as you can set the levels at 2 million and then the poor are excluded.

Do you have any real experience with this tax ? I know i file it regularly for clients and though I hate it as there is enough tax already it seems a fair tax if you want to take money from the rich.

[Thai at Heart]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Abhisit tried the same type of reform and everyone scurried for cover.

[rametindallas]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Abhisit tried the same type of reform and everyone scurried for cover.

The Amartaya control every side. He who has the money has the power.

[belg]

i hope everybody will have to pay the tax, i mean EVERYBODY, as some families own 80-90% of the land, and they will not be happy

[smutcakes]

i hope everybody will have to pay the tax, i mean EVERYBODY, as some families own 80-90% of the land, and they will not be happy

I can say with 99.99% certainty that a land tax will not come in. Like it or not, all political parties are funded in a large part by wealthy corporations and individuals who by in large are the largest land owners.

They might bring in some kind of land tax, but it will not be targeted at the above groups, and if it is, there will be known loopholes of how to get out of it or very much mitigate it.

[Robby nz]

Korn told The Nation yesterday that the draft legislation for the property tax is already there. It only needed to be passed by Parliament but the Yingluck government dropped it.

Now we see which government is really on the side of the rich, land-owning Amataya.

IMO, the reason property is so expensive (beyond what average people can afford) is because wealthy land-owners, can let the land stay idle for generations without any expense. The purpose of a property tax is to keep the land in circulation and make it productive. Those rich land-owners might not hoard so much land if it cost them to keep it. Property values in Bangkok are at least 40% above those in Dallas and farm land can be ten times as much as farm land in Texas. (I use Texas because it is equivalent in area to Thailand though the population of Thailand is 2.5 times higher)

Abhisit tried the same type of reform and everyone scurried for cover.

It was the Dem Govt under Abhisit that proposed the property tax legislation that Korn referred to.

It would seem a good idea to look at including it in the proposals for reform, at the very least use it as a basis for land reform.

Unless someone has a particular wish to reinvent that wheel.

Now theres a scary thought, if the wheel had been invented by pollies what would it look like ?