Land, inheritance taxes this year: PM

[Lite Beer]

POLICY ADDRESS
Land, inheritance taxes this year: PM
Kris Bhromsuthi
The Nation

BANGKOK: -- Prayuth vows to make taxation fair; NLA welcomes policy moves

The new government plans to introduce inheritance and land/property taxes before the end of the year as part of its goal to broaden the tax base in the new fiscal year, which starts next month, Prime Minister General Prayuth Chan-ocha said yesterday in his policy address.

Prayuth said the tax collection system would be restructured to ensure personal and corporate income tax is collected efficiently. Also, new taxes, such as duties on inheritance as well as land and property, would be brought in.

"Tax collection in this new fiscal year will be broadened to boost state revenue and promote fairness. This will include inheritance and land taxes," the premier reiterated. "This would have a limited impact on low-income earners, while tax benefits that favour the rich will be eliminated."

He also noted that only some 20 million of Thailand's 68 million people paid taxes.

Prayuth, who also heads the National Council for Peace and Order (NCPO), spent about two hours delivering his policy statement before the National Legislative Assembly (NLA).

He also said the policies were expected to have successful results within a year, provided everybody stepped in and helped push for the country's sustainable growth.

"It's no use having grand-sounding policies unless you put them into action," Prayuth said.

After delivering the speech, Prayuth excused himself saying he had to go inspect the flooding in Sukhothai province.

The NLA members praised Prayuth's policies, and other than offering a couple of proposals, they came up with no points that need to be debated by Cabinet.

It appeared that yesterday's assembly was a celebration, with a proposal or two thrown in, rather than a session for critical examination and regulation of government policies. Most NLA members who stood up to make remarks were former bureaucrats, academics, businessmen and ex-senators. Military officers, meanwhile, remained quiet.

The air of fierce exchanges, the raising of hands in protest and the generally tense atmosphere that usually marks debates in the Thai parliament were conspicuously missing yesterday.

"I would like to applaud the administration policy, particularly the one on protecting and honouring the monarchy... a practical framework has been laid down so relevant public organisation can operate more effectively," NLA member and academic Taweesak Suthakavatin said.

"The government's policies meet the people's needs... These polices are based on His Majesty's philosophy of sufficient economy... I have every confidence in them," forestry expert Sanit Aksornkaew said in his opening statement.

"I'd like to applaud the government's policies, which cover all of the [reform] dimensions," businessman Isara Vongkusolkit said.

Politicians have voiced concern on whether the NLA, which was handpicked by the NCPO, could effectively perform the task of policy regulation by engaging in critical debate.

Democrat Party leader Abhisit Vejjajiva called on NLA members to do their duty by cchecking all national policies closely.

The media also paid a great deal of attention to yesterday's meeting, with an unusually large number of reporters turning up at Parliament.

Some reporters were refused entry to the media zone, as it was packed with journalists.

Some 186 of 192 NLA members showed up for yesterday's meeting, and Prayuth, dressed in a light grey suit and tie, was one of the last to arrive. He appeared to be in high spirits, and even made light-hearted, witty remarks while delivering his policy statement.

"I was nervous last night because I was worried I would have a tough time delivering this speech," he joked.

He also dismissed rumours of having a very big bank balance.

"There was a rumour that I told a bank official to hide my assets of Bt28 billion. If this rumour were true, I wouldn't be standing here. I would have handed it over to farmers and built something valuable for the country... and I would have just gone on vacation," he said.

In his speech, Prayuth also mentioned the need to reform the national railway system, saying that existing passenger trains were far too old.

Last night, Prayuth said that he now has "more peace of mind" after announcing his policy statement.

"As prime minister, I have more peace of mind now, as we have proceeded according to regulations and in existing traditions - which is to announce policies for national administration to the NLA and the people of Thailand," he said in his weekly TV programme "Returning Happiness to People in the Country".

The PM told the audience that his government's policies are based on His Majesty the King's principle of "understanding, reaching out and development", and the Royal philosophy of sufficiency economy.

Source: http://www.nationmultimedia.com/national/Land-inheritance-taxes-this-year-PM-30243199.html

-- The Nation 2014-09-13

[ColdSingha]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

[Hedghog]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Army surplus.

[FangFerang]

I think the General was saying he does not have 28 billion to hide.

Despite criticizing everyone, I like General Prayuth much more than anyone either side has ever fielded as a leader. The creator of the yellow shirts is a convicted criminal, as well as Thaksin. Both sides stink, but all politicians stink -- no matter how often they bathe.

On Friday, General Prayuth commented that there are rumors he is corrupt. I find it hard to believe he is corrupt. He has both hands on the reins here. He has no need to be corrupt at all. The General has all the power. Corruption is to gain power, so it seems a zero sum accusation to me.

I do not believe General Prayuth can fix all the graft and corruption problems in Thailand -- many go back to the nineteen thirties and include those he counts as friends. I do believe he is promising stability and at least a chance for change.

There are serious benefits and problems with this approach, two being that he cannot be bought and that he is not legally accountable. We guests live in interesting times.

[manarak]

Dear General,

don't tax land and inheritance, better tax wealth !

For example no tax up to 25 million baht, 0.5% per year up to 50 million and beyond 1% per year - this would be much fairer.

[worgeordie]

I am pleased the Ex General is passing laws,that the rich politicians,

would NEVER do,as they always put themselves before the good of

the country.dread the day they return,the country is doing very nicely

without them.

regards Worgeordie

[theslime]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Rumour, khao jai krup?.

[Pib]

"Tax collection in this new fiscal year will be broadened to boost state revenue and promote fairness. This will include inheritance and land taxes," the premier reiterated. "This would have a limited impact on low-income earners, while tax benefits that favour the rich will be eliminated."

Sounds like they are purely trying to increase tax revenue....don't see anything that would lower taxes/costs for the low-income. In fact, land taxes will probably end up just upping the rent for low-income renters.

[halloween]

Thaksin will find a way round the inheritance tax. Hopefully it will be by dying before they are enacted.

[The stuttering parrot]

The rich get richer and the poor get poorer.

[Robby nz]

Introducing land and inheritance tax has been tried before by previous military governments only to have them reversed again when politicians took over.

This time there needs to be some mechanism put in place so this can not happen.

[HiSoLowSoNoSo]

The coffers must be empty, or why all these new taxes. Maybe he should travel to Scandinavia to get some new ideas about new taxes, they tried once "Dog Tax" in Sweden, it did not work out very well. Maybe he can Introduce "Buffalo Tax" 300 THB per animal per year, or a "Mia Noi" tax, ( progressive tax depending on how many Mia Noi's you got)

[halloween]

Introducing land and inheritance tax has been tried before by previous military governments only to have them reversed again when politicians took over.

This time there needs to be some mechanism put in place so this can not happen.

That would require a method to stop (poor, stupid, gullible, venal.........insert personal choice) voters from selling their vote (and country) to wealthy criminals. After that method is applied, the result might not be democracy as we know it. OTOH neither was the last "democratically elected" government.

[rubl]

Introducing land and inheritance tax has been tried before by previous military governments only to have them reversed again when politicians took over.

This time there needs to be some mechanism put in place so this can not happen.

Yesterday the BangkokPost mentioned that "property and inheritance tax" was introduced by the Pridi Banomyong Government, but again abolished later. That was probably just after 1946 or so.

Furthermore the appointed Surayuth Government introduced it in 2007, but the efforts were dropped as there came arguments that laws like that should only be passed by an elected government and lawmakers.

[fab4]

(Prayuth) even made light-hearted, witty remarks while delivering his policy statement.

"I was nervous last night because I was worried I would have a tough time delivering this speech," he joked.

"There was a rumour that I told a bank official to hide my assets of Bt28 billion. If this rumour were true, I wouldn't be standing here. I would have handed it over to farmers and built something valuable for the country... and I would have just gone on vacation," he said.

Edited September 13, 2014 by fab4

[alant]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Army surplus.

[alant]

oh look another tax, the times they are a changing.

[jpeg]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Rumour, khao jai krup?.

Hmmmm, not sure. But the General has striking (some would say spooky) similarities with Sarit Thanarat, another popular coup maker who, upon his demise was found to have amassed a fortune of $140 million, that's around $600 million at today's rate.

[Confuscious]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Purchasing "fake" bomb detectors perhaps?

[rubl]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Rumour, khao jai krup?.

Hmmmm, not sure. But the General has striking (some would say spooky) similarities with Sarit Thanarat, another popular coup maker who, upon his demise was found to have amassed a fortune of $140 million, that's around $600 million at today's rate.

Pray elaborate on "striking similarities"

[jpeg]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Rumour, khao jai krup?.

Hmmmm, not sure. But the General has striking (some would say spooky) similarities with Sarit Thanarat, another popular coup maker who, upon his demise was found to have amassed a fortune of $140 million, that's around $600 million at today's rate.

Pray elaborate on "striking similarities"

Do your own research

[rubl]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Purchasing "fake" bomb detectors perhaps?

That's defamation. Those GT200's were real bomb detectors, only didn't work too well

BTW it would seem the first few were ordered by the RTAF in 2004 and deemed so 'useful' all other services including the RTP wanted them.

[bangkapi]

The problem with land inheritance taxes is that people can and will keep control of land that belonged to grandpa 100 years ago without changing the name on the title. No ownership transfer equals no taxes.

[Thanet]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

He is thrifty. A hard saver.

Rumour, or a Freudian slip.

How else would he have done it?

Edited September 13, 2014 by Thanet

[Thanet]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

Army surplus.

^^

[Thanet]

I think the General was saying he does not have 28 billion to hide.

Despite criticizing everyone, I like General Prayuth much more than anyone either side has ever fielded as a leader. The creator of the yellow shirts is a convicted criminal, as well as Thaksin. Both sides stink, but all politicians stink -- no matter how often they bathe.

On Friday, General Prayuth commented that there are rumors he is corrupt. I find it hard to believe he is corrupt. He has both hands on the reins here. He has no need to be corrupt at all. The General has all the power. Corruption is to gain power, so it seems a zero sum accusation to me.

I do not believe General Prayuth can fix all the graft and corruption problems in Thailand -- many go back to the nineteen thirties and include those he counts as friends. I do believe he is promising stability and at least a chance for change.

There are serious benefits and problems with this approach, two being that he cannot be bought and that he is not legally accountable. We guests live in interesting times.

Hmmmm. I share your disdain of politicians here, but Prayuth is a politician too. The advantage has over other politicians is that it is forbidden to report anything he does wrong.

Cronyism and corruption are just as prevalent in the army as they are elsewhere, unfortunately. He can say what he likes, but, like Sarit, we'll never hear the truth about what he does until after he is gone.

Edited September 13, 2014 by Thanet

[anon467367354]

Why don't they do a fair tax system. you spend it you pay tax. That way the rich will be paying more tax without all the fraud and cheating.

[rubl]

Hmmmm, not sure. But the General has striking (some would say spooky) similarities with Sarit Thanarat, another popular coup maker who, upon his demise was found to have amassed a fortune of $140 million, that's around $600 million at today's rate.

Pray elaborate on "striking similarities"

Do your own research

So much to do, so little time to do it in.

You're rather unhelpful, my dear chap. As it is I'm afraid I might have to come to the preliminary conclusion that the only similarity not mentioned yet might be both gentlemen being generals.

[rubl]

The problem with land inheritance taxes is that people can and will keep control of land that belonged to grandpa 100 years ago without changing the name on the title. No ownership transfer equals no taxes.

Maybe that's where inheritance tax comes in ? Plus a few laws which require land ownership transfer on the death of the owner and various clauses to try to make it 'land'tight.

[rubl]

the general has assets of 28 BILLION?!

anyone know how he amassed this fortune?

He is thrifty. A hard saver.

Rumour, or a Freudian slip.

How else would he have done it?

Allegedly that is. At least those who will inherit from him will be required to pay taxes assuming there will be anything left to tax.