Inheritance tax gets NCPO nod

[Carrerakiss]

 

undeveloped land, so after 50 years you pay 100% tax, and if you own it more than 50 years you will owe the tax man at 2% per year, makes sense

 
I am not sure you are reading it correctly or i am confused:
 
My reading is either two ways, it increases by 0.05% per annum which would mean it would take 40 years to get to 2% payable per annum, but then the 3 year adjustment is irrelevant?
 
Or
 
It is increased by an average of 0.05% every 3 years which would mean it takes about 60 years to even reach 1%
 
I am sure i must be reading it incorrectly.
 
Will the undeveloped land/agriculture tax really hurt any of the large landholders outside city areas? Surely having large swathes of land changed into 'agriculture' whilst holding it would be used to mitigate the undeveloped land tax?
 
I do agree with the taxes, but i am sure for the most part landlords will simply pass the tax cost down to tenants, farmers operating the land.
 

I read it as - it starts at 0.05% per year of value - then every 3 years it is amended up by (an average of) 0.05%. Thereby taking 40 raises to reach 2% - 120 years!
 
Seems silly, I would imagine it will change to increase faster at set stages instead, which would make more sense - say 0.05% first 3 years, 0.25% next 3 years, 0.5% next 3 years...so on - assuming the goal is to make them do something quickly with the land.

I doubt there is any goal other than to raise money. Anything else would be strategic. Remember where we are?

[robblok]

When on has to start calling others ( uneducated ) one has already lost the argument. 

 

In general I would agree.. but anyone who has been here a bit longer and followed the news knows that the Thai-tax base is totally wrong. Several studies have indicated that. It taxes the middle class salary workers a lot and not the rich. 

 

From those studies it was made clear that property tax was the answer. If you never read anything like that or keep informed then its not my job to educate you. 

[retell]

It's a pity that they haven't decided to review the taxes on alcohol to bring Lao Khao into line with other spirits.  No that might really help to save a few lives!

The better put some horrible flavouring in there and only sell it at the hardware store next to thinner and terpentine ,

[Feesbay John]

 

When on has to start calling others ( uneducated ) one has already lost the argument. 

 

In general I would agree.. but anyone who has been here a bit longer and followed the news knows that the Thai-tax base is totally wrong. Several studies have indicated that. It taxes the middle class salary workers a lot and not the rich. 

 

From those studies it was made clear that property tax was the answer. If you never read anything like that or keep informed then its not my job to educate you. 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

[Thai at Heart]

 

 

This means that every middle class property owner is gonna pay a couple thousand a year. The fleecing of the middle class continues as even 1 bedroom condos in Bangkok are going for at least 1 million baht these days. Those who own 10 million homes or have hundreds rai of land won't worry that much, but your average hard working family will. If the junta introduces this tax scheme overnight, it will be pure thievery.
 
 
 
 

Its a 1000 bt per million a year hardly a probem for the middle class

Sent from my SM-G900F using Thaivisa Connect Thailand mobile app
 

 
 
Mind you, but the lower and middle class families in Thailand are struggling to make ends meet these days. Household debts and credit card debts are soaring. Prices of gas, electricity, (poor) education, healthy food are higher than ever, so yes every 1000 baht is tough for a lot of people. 
 

Middle class wont have a problem with this and lower class is almost exempt. They could have upped the value of houses to 2 million or so to be sure but otherwise I think this is great. I hate taxes but Thailand needed this the middle class salary workers were paying it all while the real rich did not. The poor were getting all the money from the middle class instead of from the rich.
 
The percentages should have been higher and the threshold higher too to get the rich harder but still this is a major step ahead and a true sign the junta is not here for the rich as they are hit hardest. The junta is really doing what needs be done.. no political party would have done this as all they were doing was spending money on popular policies and not increasing the tax base.

This policy will see the treasury absolutely full to the brim with cash. Tax evasion is enormous in Thailand and the only tangible assets the state can be sure to touch is land.

[zig]

 

Another interesting point. All over areas of prime Bangkok there are families people who have resisted the urge to sell their prime land to developers and live in the shadows of shiny new blocks. I suspect some (not all) have very little money at all, but obviously have a very valuable asset under their feet. The value of the land would probably be huge, and they would have no way of paying the tax, leaving little option but to sell to the developers...... hopefully there is some clauses which may relate to the tax not being payable on a families primary residence or alike, with the aim to target more on those with multiple abodes for renting out.

 

 

So pretty soon the last green spots in the cities will disappear and make room for more condominiums or shopping malls. Great idea, NCPO! who needs green spots anyway?

 

Well, another effect would be that many Thais who are holding a number of empty properties and condos as an investment would have to reevaluate their approach once they have to start paying tax on this. This would put many empty properties back in the market and perhaps there would be no need for building more condominiums for a while ... Though, perhaps 0.1% is too little to have a major impact.

[Feesbay John]

 

 

When on has to start calling others ( uneducated ) one has already lost the argument. 

 

In general I would agree.. but anyone who has been here a bit longer and followed the news knows that the Thai-tax base is totally wrong. Several studies have indicated that. It taxes the middle class salary workers a lot and not the rich. 

 

From those studies it was made clear that property tax was the answer. If you never read anything like that or keep informed then its not my job to educate you. 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

 

Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.

When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  

[robblok]

 

 

When on has to start calling others ( uneducated ) one has already lost the argument. 

 

In general I would agree.. but anyone who has been here a bit longer and followed the news knows that the Thai-tax base is totally wrong. Several studies have indicated that. It taxes the middle class salary workers a lot and not the rich. 

 

From those studies it was made clear that property tax was the answer. If you never read anything like that or keep informed then its not my job to educate you. 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

 

 

That shows me you know nothing about taxation. As a tax accountant i know a bit more. The rich are not on high salaries. They keep it low and get the money through their companies. If they had salaries to tax it would have been easy. Somehow I doubt you been here 10 years and follow the news else you would know stuff like this.  There are many ways to get money out of a company.. like using a company car and thus lowering salary or living in a company owned house ect ect. For too many ways to avoid tax to type here. This is a great way to tax the rich with the only problem the 1 million threshold that should be 3 million or so. But its a start.

 

But you were so educated you said this tax would increase 100 fold in a few years.. care to back that up ?

[Feesbay John]

 

 

 

When on has to start calling others ( uneducated ) one has already lost the argument. 

 

In general I would agree.. but anyone who has been here a bit longer and followed the news knows that the Thai-tax base is totally wrong. Several studies have indicated that. It taxes the middle class salary workers a lot and not the rich. 

 

From those studies it was made clear that property tax was the answer. If you never read anything like that or keep informed then its not my job to educate you. 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

 

 

That shows me you know nothing about taxation. As a tax accountant i know a bit more. The rich are not on high salaries. They keep it low and get the money through their companies. If they had salaries to tax it would have been easy. Somehow I doubt you been here 10 years and follow the news else you would know stuff like this.  There are many ways to get money out of a company.. like using a company car and thus lowering salary or living in a company owned house ect ect. For too many ways to avoid tax to type here. This is a great way to tax the rich with the only problem the 1 million threshold that should be 3 million or so. But its a start.

 

But you were so educated you said this tax would increase 100 fold in a few years.. care to back that up ?

 

Read my quote above,

[Bluespunk]

No tax is good,
 
How can anyone say taxing is good. It will not effect the rich, it never has in all the other country's around the world that have these taxes, so and how do you think it will here. Its the lower class that will be hardest hit. If tax is on land they now have to find that extra to get on the ladder. 
 
How many years before this low rate of 0.05% will it take to be 5% plus,,, This rate is just set to get it passed. Years to come is the one's I feel for. Were will this money be spent, on roads, Hold on we already pay tax on fuel for that, Schools, hospital, ect ect, Hold on is that not why we pay VAT. 
Or is this new tax to help pay the bankers more and so Thailand can borrow more, making like Europe and USA  were it can never be payed back.
 
This tax is not good for the Thai people.
 

Taxation is a necessary evil in a civil society. I pay mine and while not always happy to do so, direct or indirect, I do see why it is necessary.

[Baerboxer]

It seems the junta is serious about taxing the rich if this goes on many have to eat their words that the junta is there for the elite. I myself think its great they broaden the tax base. I hope the middle class gets some tax breaks as they are usually the ones paying salary tax and the real rich not.

 

Agree - it will be interesting to see the tax rate breaks and use of thresh holds.

 

It will also spawn big developments in tax planning and wealth management industries. The very rich always seem to find people who can minimize the tax they pay whilst the middles classes get squeezed.

 

Hope any increased tax revenue will be used wisely.

[Feesbay John]

 

 

 

When on has to start calling others ( uneducated ) one has already lost the argument. 

 

In general I would agree.. but anyone who has been here a bit longer and followed the news knows that the Thai-tax base is totally wrong. Several studies have indicated that. It taxes the middle class salary workers a lot and not the rich. 

 

From those studies it was made clear that property tax was the answer. If you never read anything like that or keep informed then its not my job to educate you. 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

 

Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.

When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  

 

As you are a tax accountant should you not be looking at how you can tax these company' on there so called perk's and not the average Thai. Or is this the easy way for you to tax the average Thai and not the company's

[Thai at Heart]

It seems the junta is serious about taxing the rich if this goes on many have to eat their words that the junta is there for the elite. I myself think its great they broaden the tax base. I hope the middle class gets some tax breaks as they are usually the ones paying salary tax and the real rich not.

 
Agree - it will be interesting to see the tax rate breaks and use of thresh holds.
 
It will also spawn big developments in tax planning and wealth management industries. The very rich always seem to find people who can minimize the tax they pay whilst the middles classes get squeezed.
 
Hope any increased tax revenue will be used wisely.

Well it is really only going to effect those with massive land holdings or large properties.

House owners will just pay a small amount every year. I think it is absolutely fair. The rich have banked their money in land for too long, untounched.

[robblok]

 

 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

 

Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.

When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  

 

As you are a tax accountant should you not be looking at how you can tax these company' on there so called perk's and not the average Thai. Or is this the easy way for you to tax the average Thai and not the company's

 

Those perks can be hidden too well.. as I said you don't understand the system. If it was that easy I should be done. In the West they do tax the perks. But the registration of things is 10 fold better and not achievable here. 

 

They could even receive no salary and just company benefits and again it would be too hard to fix.. this is a tax that is much harder to avoid and easier to register.

[robblok]

 

It seems the junta is serious about taxing the rich if this goes on many have to eat their words that the junta is there for the elite. I myself think its great they broaden the tax base. I hope the middle class gets some tax breaks as they are usually the ones paying salary tax and the real rich not.

 

Agree - it will be interesting to see the tax rate breaks and use of thresh holds.

 

It will also spawn big developments in tax planning and wealth management industries. The very rich always seem to find people who can minimize the tax they pay whilst the middles classes get squeezed.

 

Hope any increased tax revenue will be used wisely.

 

 

Yes.. of course the increased tax revenue should be used wisely and that is a problem with any government. But its not like here the healthcare and schooling are not in need of more money. 

[Feesbay John]

@robblok

 

You talk about the rich not paying taxes by using there company's,,, is that not what needs to be looked at, many people that have home's do not have a company so why would you want them to pay a tax to get at the rich who have company's, Just doe's not make sense to me. 

 

[retarius]

I'm guessing that there will be a blanket tax exemption for all hi-sos, soap opera stars and politicians.

[taff33]

they should also implements a farang tax
plus a bigger bigger tax for retired farang
and a huge one for farang married to bg

Strange person ?


Sent from my iPad using Thaivisa Connect Thailand

[robblok]

@robblok

 

You talk about the rich not paying taxes by using there company's,,, is that not what needs to be looked at, many people that have home's do not have a company so why would you want them to pay a tax to get at the rich who have company's, Just doe's not make sense to me. 

 

 

That is because you don't understand that that kind of change is almost impossible here due to registration issues and such. I have seen how hard it was to tax the perks in the West and how long it took for the system to work. It is just not feasible here. If it were id fully support it.

 

This is just a way to get to the rich in a way they can't avoid. I do agree the threshold should be 3 million or so. Mind you for a one million or two million home you need quite a large mortgage already indicating a salary over 20k and that is not poor for Thais. 

 

The tax problems of Thailand have been discussed many times and the tax base is just too small. Increasing the VAT would hit the poor more then this. Telling to pay more for healthcare would hurt them more too. The other option is not feasible so this is the best decision. This has come up through the years and most of the people who do have experience and followed the issue agreed it should be done. 

 

In a perfect world your solution would work.. even in the West it took quite some doing.. here its not going to work.

[Thai at Heart]

@robblok
 
You talk about the rich not paying taxes by using there company's,,, is that not what needs to be looked at, many people that have home's do not have a company so why would you want them to pay a tax to get at the rich who have company's, Just doe's not make sense to me. 
 

Nice idea. What is the first thing a company owns? Buildings and land.

There you are.

[Feesbay John]

 

 

 

 

 

I have been here for over 10 years and do follow the news.

 

You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.

 

Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.

When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  

 

As you are a tax accountant should you not be looking at how you can tax these company' on there so called perk's and not the average Thai. Or is this the easy way for you to tax the average Thai and not the company's

 

Those perks can be hidden too well.. as I said you don't understand the system. If it was that easy I should be done. In the West they do tax the perks. But the registration of things is 10 fold better and not achievable here. 

 

They could even receive no salary and just company benefits and again it would be too hard to fix.. this is a tax that is much harder to avoid and easier to register.

 

So find these perks that are hidden so well, if this can be achieved in other country's then it could all so be here, I am not saying is will be easy to do here BUT is that not the way to get at the rich.

 

What this tax is doing is to make them that do not have business pay for them that have, 

[Feesbay John]

 

@robblok
 
You talk about the rich not paying taxes by using there company's,,, is that not what needs to be looked at, many people that have home's do not have a company so why would you want them to pay a tax to get at the rich who have company's, Just doe's not make sense to me. 
 

Nice idea. What is the first thing a company owns? Buildings and land.

There you are.

 

And get them that have a company to pay tax on that building or land and NOT them that do not have a company.

 

If this tax is set at getting at the rich then tax them not every one.

[Thai at Heart]

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I have been here for over 10 years and do follow the news.
 
You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.
 [/quote]
Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.
When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  
 [/quote]
As you are a tax accountant should you not be looking at how you can tax these company' on there so called perk's and not the average Thai. Or is this the easy way for you to tax the average Thai and not the company's
 [/quote]
Those perks can be hidden too well.. as I said you don't understand the system. If it was that easy I should be done. In the West they do tax the perks. But the registration of things is 10 fold better and not achievable here. 
 
They could even receive no salary and just company benefits and again it would be too hard to fix.. this is a tax that is much harder to avoid and easier to register.
 [/quote]
So find these perks that are hidden so well, if this can be achieved in other country's then it could all so be here, I am not saying is will be easy to do here BUT is that not the way to get at the rich.
 
What this tax is doing is to make them that do not have business pay for them that have, [/quote]

Many of these businesses are family owned with everyone and the grandma being paid officially 20k and the money being rolled into one to fund a family.

The cars are taxed actually to hell already. Basically, this land tax does tax the rich because the distribution is so bad in Thailand. 80% of the land is held by a 20%.

It is as simple and effective a way to get this done.

[Feesbay John]

 

@robblok

 

You talk about the rich not paying taxes by using there company's,,, is that not what needs to be looked at, many people that have home's do not have a company so why would you want them to pay a tax to get at the rich who have company's, Just doe's not make sense to me. 

 

 

That is because you don't understand that that kind of change is almost impossible here due to registration issues and such. I have seen how hard it was to tax the perks in the West and how long it took for the system to work. It is just not feasible here. If it were id fully support it.

 

This is just a way to get to the rich in a way they can't avoid. I do agree the threshold should be 3 million or so. Mind you for a one million or two million home you need quite a large mortgage already indicating a salary over 20k and that is not poor for Thais. 

 

The tax problems of Thailand have been discussed many times and the tax base is just too small. Increasing the VAT would hit the poor more then this. Telling to pay more for healthcare would hurt them more too. The other option is not feasible so this is the best decision. This has come up through the years and most of the people who do have experience and followed the issue agreed it should be done. 

 

In a perfect world your solution would work.. even in the West it took quite some doing.. here its not going to work.

 

Sorry but I do not agree, You are talking about getting at the rich at the average Thai's expense. This is not good as the rich will only find a way around this tax as well. Find away to tax the company's not the average Thai.

[Pib]

 

 

Middle class wont have a problem with this and lower class is almost exempt. They could have upped the value of houses to 2 million or so to be sure but otherwise I think this is great. I hate taxes but Thailand needed this the middle class salary workers were paying it all while the real rich did not. The poor were getting all the money from the middle class instead of from the rich.

 

The percentages should have been higher and the threshold higher too to get the rich harder but still this is a major step ahead and a true sign the junta is not here for the rich as they are hit hardest. The junta is really doing what needs be done.. no political party would have done this as all they were doing was spending money on popular policies and not increasing the tax base.

 

Me thinks you are wrong about the Middle Class not having a problem with this, especially when they  are living in a residence worth several million baht...heck, here in Bangkok any decent middle class residence starts around Bt2M-3M for a "small" condo/apartment/townhouse (much more in central Bangkok)...and if it's a larger townhouse or single family home on a small patch of dirt the price jumps way up.  

 

Nope, I think the middle class "will" have a big issue in now having to pay several thousand baht per year, say Bt2K on a Bt2M valued residence, Bt5K on a Bt5M valued residence,  etc).   In my large moobaan of approx 750 homes in western Bangkok about the lowest cost home is around Bt5M, but most probably range in the Bt7M to Bt12M ballpark with a few dozen homes probably exceeding Bt30M....most of these home owners are small business operators  (like running a small wholesale/retail store in some mall) or people working regular jobs at around Bt20-30K per month based on discussions with my neighbors.  And it's just not my moobaan, plenty of similar moobaans all over Bangkok and other areas in Thailand with homes valued the same and the same type of middle class folks living in them.

 

Now if your definition of "Middle Class" folks in Thailand are folks with plenty of money, me thinks you ought to reevaluate your definition.  Sure,some of the folks do have plenty of money, but most don't...have their homes mortgaged, etc.

 

If there is 30k income then that is 360 K a year then the 5000 (if they have a 5 million home dont think you can do that with 30 income) its not that much. But yes for some it might.. but these small business owners usually pay no tax already so its fair to tax them.

 

Actually, its more than Bt20K-30K monthly gross income as almost all houses on my sol are extended families with 2 to 5 working adults.  Like my next door neighbors which live in a Bt8M house consisting of 4 working adults in middle class jobs...two bothers and their wifes along with two kids and the mother of the brothers living there.   And right now one brother and his wife have apparently decided the monthly costs are two high and are trying to the get other brother and his wife to assume the total mortgage according to the mother who freely talks her family troubles.   And the house a little further down the soi has 5 working adults most likely sharing the home mortgage/upkeep costs.   This story is repeated over and over with extended families buying a house and sharing costs. Heck, the wife and I are the only two-person house on our soi with 12 houses..every other house is has 3 to 5 (or more) living in the house...and going to work each morning.   Now you might thing that many working adults in a home should make for easy living money-wise, but you if have a mortgage on a Bt8M that mortgage plus other day to day living expenses quickly eats up your middle class monthly income.  

 

I'll say it again, I think the middle class will have a big issue with this proposed tax increase.   Hopefully when the dust settles and if any yearly property taxes are implemented the rate will be much lower than proposed and at much higher exemption than a mere Bt1M which I don't even think would buy a shoebox size apartment/condo in Bangkok anymore.

Edited August 1, 2014 by Pib

[Feesbay John]

[quote name="robblok" post="8182118" timestamp="1406868844"]

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I have been here for over 10 years and do follow the news.
 
You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.
 [/quote]
Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.
When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  
 [/quote]
As you are a tax accountant should you not be looking at how you can tax these company' on there so called perk's and not the average Thai. Or is this the easy way for you to tax the average Thai and not the company's
 [/quote]
Those perks can be hidden too well.. as I said you don't understand the system. If it was that easy I should be done. In the West they do tax the perks. But the registration of things is 10 fold better and not achievable here. 
 
They could even receive no salary and just company benefits and again it would be too hard to fix.. this is a tax that is much harder to avoid and easier to register.
 [/quote]
So find these perks that are hidden so well, if this can be achieved in other country's then it could all so be here, I am not saying is will be easy to do here BUT is that not the way to get at the rich.
 
What this tax is doing is to make them that do not have business pay for them that have, 

Many of these businesses are family owned with everyone and the grandma being paid officially 20k and the money being rolled into one to fund a family.

The cars are taxed actually to hell already. Basically, this land tax does tax the rich because the distribution is so bad in Thailand. 80% of the land is held by a 20%.

It is as simple and effective a way to get this done.

 

So let's tax the 80% to get the 20% to pay. Read what you are saying, Think about what you are saying, YOU want to tax every one more because the rich are not paying there way and this is the way to do it, BULL Shiiiiiiiiiiiiiiitttttttt

[Thai at Heart]

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I have been here for over 10 years and do follow the news.
 
You are taking about the middle class getting taxed and the rich not on salary and you think the best way to deal with this is to tax the home's of the lower and average class. Salary and a home are two different things, Tax the salary of the rich and job done.
 [/quote]
Better still would be to tax the salary, divined and the bonuses of the rich, not just the salary.
When I had my own company for many years I saved a future because I only paid myself a low salary and that is how the rich are saving.  
 [/quote]
As you are a tax accountant should you not be looking at how you can tax these company' on there so called perk's and not the average Thai. Or is this the easy way for you to tax the average Thai and not the company's
 [/quote]
Those perks can be hidden too well.. as I said you don't understand the system. If it was that easy I should be done. In the West they do tax the perks. But the registration of things is 10 fold better and not achievable here. 
 
They could even receive no salary and just company benefits and again it would be too hard to fix.. this is a tax that is much harder to avoid and easier to register.
 [/quote]
So find these perks that are hidden so well, if this can be achieved in other country's then it could all so be here, I am not saying is will be easy to do here BUT is that not the way to get at the rich.
 
What this tax is doing is to make them that do not have business pay for them that have, [/quote]

Many of these businesses are family owned with everyone and the grandma being paid officially 20k and the money being rolled into one to fund a family.

The cars are taxed actually to hell already. Basically, this land tax does tax the rich because the distribution is so bad in Thailand. 80% of the land is held by a 20%.

It is as simple and effective a way to get this done.[/quote]
 
So let's tax the 80% to get the 20% to pay. Read what you are saying, Think about what you are saying, YOU want to tax every one more because the rich are not paying there way and this is the way to do it, BULL Shiiiiiiiiiiiiiiitttttttt[/quote]

Huh?

The land is held in the hands of the relatively few. Go and read about who are the single largest land holders in the country. Yes people may have. 1/2 a rai in a moobhan for a house, but there are the wealthy who are holding thousands, tens of thousands and hundreds of thousands of rai all untaxed at present.

This reform sits pretty squarley on rich land holders and it a long overdue reform. A former owner of a company I worked for had 26000 rai under cultivation and huge tracts of land in the north sitting idle. He paid nothing .



Houses are a different issue, but if people are trying to fund a 5 or 6 mn baht mortgage with only 30k per month they are in trouble anyway.

[robblok]

 

 

 

Middle class wont have a problem with this and lower class is almost exempt. They could have upped the value of houses to 2 million or so to be sure but otherwise I think this is great. I hate taxes but Thailand needed this the middle class salary workers were paying it all while the real rich did not. The poor were getting all the money from the middle class instead of from the rich.

 

The percentages should have been higher and the threshold higher too to get the rich harder but still this is a major step ahead and a true sign the junta is not here for the rich as they are hit hardest. The junta is really doing what needs be done.. no political party would have done this as all they were doing was spending money on popular policies and not increasing the tax base.

 

Me thinks you are wrong about the Middle Class not having a problem with this, especially when they  are living in a residence worth several million baht...heck, here in Bangkok any decent middle class residence starts around Bt2M-3M for a "small" condo/apartment/townhouse (much more in central Bangkok)...and if it's a larger townhouse or single family home on a small patch of dirt the price jumps way up.  

 

Nope, I think the middle class "will" have a big issue in now having to pay several thousand baht per year, say Bt2K on a Bt2M valued residence, Bt5K on a Bt5M valued residence,  etc).   In my large moobaan of approx 750 homes in western Bangkok about the lowest cost home is around Bt5M, but most probably range in the Bt7M to Bt12M ballpark with a few dozen homes probably exceeding Bt30M....most of these home owners are small business operators  (like running a small wholesale/retail store in some mall) or people working regular jobs at around Bt20-30K per month based on discussions with my neighbors.  And it's just not my moobaan, plenty of similar moobaans all over Bangkok and other areas in Thailand with homes valued the same and the same type of middle class folks living in them.

 

Now if your definition of "Middle Class" folks in Thailand are folks with plenty of money, me thinks you ought to reevaluate your definition.  Sure,some of the folks do have plenty of money, but most don't...have their homes mortgaged, etc.

 

If there is 30k income then that is 360 K a year then the 5000 (if they have a 5 million home dont think you can do that with 30 income) its not that much. But yes for some it might.. but these small business owners usually pay no tax already so its fair to tax them.

 

Actually, its more than Bt20K-30K monthly gross income as almost all houses on my sol are extended families with 2 to 5 working adults.  Like my next door neighbors which live in a Bt8M house consisting of 4 working adults in middle class jobs...two bothers and their wifes along with two kids and the mother of the brothers living there.   And right now one brother and his wife have apparently decided the monthly costs are two high and are trying to the get other brother and his wife to assume the total mortgage according to the mother who freely talks her family troubles.   And the house a little further down the soi has 5 working adults most likely sharing the home mortgage/upkeep costs.   This story is repeated over and over with extended families buying a house and sharing costs. Heck, the wife and I are the only two-person house on our soi with 12 houses..every other house is has 3 to 5 (or more) living in the house...and going to work each morning.   Now you might thing that many working adults in a home should make for easy living money-wise, but you if have a mortgage on a Bt8M that mortgage plus other day to day living expenses quickly eats up your middle class monthly income.  

 

I'll say it again, I think the middle class will have a big issue with this proposed tax increase.   Hopefully when the dust settles and if any yearly property taxes are implemented the rate will be much lower than proposed and at much higher exemption than a mere Bt1M which I don't even think would buy a shoebox size apartment/condo in Bangkok anymore.

 

Sorry that we dont agree.. if you make so much and pay so much then an other 7000 or 8000 is not going to kill you or you are living at the edge too much. 

[WhizBang]

A bitter pill to swallow for some but a long overdue step in the right direction. And a big thumps up for a tax based on sugar content. This has the potential to save many lives.

 

Hmmmm, so, what about soft drinks that have no sugar and zero calories?  Zero tax?

 

Not saying I disagree with taxing sugar content.  Good idea actually, especially if it manages to reduce consumption.

[jpeg]

 

 

There are always problems using taxes to try and curb smoking and drinking. It rarely works,

 

Rubbish. Tobacco sales plumetted in the West when tax was massively increased. The tobacco companies then deluged developing countries with 'free trials' to get them hooked to make up the lost revenue. Do some research.

 

And as to Inheritance Tax. Good. Why should those spawn of the already wealthy receive further funding for their idle privileged lifestyle when so many are struggling in this country?