A sigh for relief as property tax is put on hold

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BURNING ISSUE
A sigh for relief as property tax is put on hold
SASITHORN ONGDEE

BANGKOK: -- PRIME MINISTER General Prayut Chan-o-cha yesterday "returned happiness" to the people in a surprise move by putting on hold a draft bill on land and building tax indefinitely due to the sluggish economy.

The move came after his administration had planned to consider a revised proposal by the Finance Ministry this month. One of them is |to lift the ceiling on tax exemption |on homes valued at Bt1.5 million |to Bt2.5 million in Bangkok and |its vicinity.

But many people want to see taxes removed from homes all together and see real taxation of the rich, as the government always says that this sort of tax is aimed at narrowing the gap between the rich and the poor.

The new land and buildings tax is one of the draft bills drawing the most criticism under the government.

Some politicians are opposing the bill in a bid to gain popularity amongst the people.

Although the latest draft bill on tax rates has given more exemptions and allowances as well as a low collection rate from land and buildings in the beginning - only Bt1,000 for every |Bt1 million - many people think it is unfair to home-owners because the proposed tax rate is hitched to the value of land. In other words, if the value of the land goes up, so would the tax rate.

Both Kittiratt Na-Ranong, a former finance minister in the Yingluck Shinawatra government, and Abhisit Vejjajiva, the head of Democrat Party and a former premier, oppose a tax being levied on homes.

They argue that many people living in prime locations would inevitably be pushed to less expensive suburbs.

Inner-city living, therefore, would primarily be the domain of the rich.

Sopon Pornchokchai, president of the Agency for Real Estate Affairs, has often opposed policies launched by the Prayut government.

But this time Sopon supports the land and building tax policy. He believes this kind of tax will be a facelift for the country's land reform and make the use of land more efficient.

Sopon said the land tax was similar to the car tax.

But the difference, however, is that people choose not to own a car, but everyone needs a place to live in - whether owned or rented.

A question that has to be asked is why didn't the government implement a tax on neglected lands, |especially plots bought for speculation.

But in the meantime, it should do more to prevent the rich from using loopholes in the law to pay less tax.

As for land and residences, the government should apply soft tax rates - but on the same basis with not too many conditions - so people could afford it, feel like they belong to the community and realise it is their duty to pay taxes so their residential area can be developed.

Moreover, the government should collect taxes on an equality basis and the burden on the poor should not be too great.

Also, if there has to be a home tax, the government needs to let the public know that all or most of the collected land tax will be used to develop infrastructure such as roads, electricity, tap water, garbage and waste management as well as improve security for communities.

People are prone to try and pay the least amount of tax, so the more the exemptions, the greater the tax |collection-management cost, excluding the corruption factor that might occur if there are inefficiencies in the audit system.

Source: http://www.nationmultimedia.com/politics/A-sigh-for-relief-as-property-tax-is-put-on-hold-30255916.html


-- The Nation 2015-03-13

[SoilSpoil]

Flip flap flop, the Thai way.

[BSJ]

Holy cow! I didn't know the PM was into amateur electronics like me!

[maidee]

young teenage daughter to dad :

dad, i am pregnant

the father is a 52 year old black muslim

he wants me to be his third wife

dad in shock

no dad, i am not pregnant, i just got a D on my report card, but that put's it all in perspective now, right ...

Edited March 13, 2015 by maidee

[Daniel Ingalls]

After review, and scrutiny over proposes and more changes, it came to a point: Poor folks making less than 12,000 baht a month will be exempt on a 1,000,000 baht home. Those over 60 and retired will be exempt from Land and Home Tax. Those under 50, will be exempt with homes over 2,000,000 baht with incomes less than 15,000 baht per month. After all the additional amendments, they came up with less than 3 people making over 1,000,000 baht a month living in a 800,000 baht home. built in the late 1950's handed down from the family. Seeing no revenue, it was shelved by the PM. Simple solution, a

1/2% tax on all properties to include Condo's. No exclusions for anyone for any reason. based upon 1/2% per 500,000 baht

valuation. fair and just for all.

[DLock]

"...returned happiness to the people..."?

So, he just has to threaten something, decide not to do it, and he has returned happiness to the people?

Is he going to increase VAT to 10% as he threatened now...or will more happiness be returned to the people?

People must be really f#$k1n6 happy about now.

[Robby nz]

It would have certainly have made the family that owns 630,000 rai of land happy and the number 2 land owning family which owns 200,00 rai and of course all those who own multi million Baht houses they will be happy that they wont be taxed.

Another mistake Mr PM, if you don't do this now it is unlikely to ever get done as most politicians are in the rich bracket and own big houses and some up to 2,000 rai of land.

I note that the finance minister is not giving up on this, lets hope he gets his way.

[samtam]

Academic now, but was this proposed tax to be levied on condos, or only on land and houses?

[smotherb]

After review, and scrutiny over proposes and more changes, it came to a point: Poor folks making less than 12,000 baht a month will be exempt on a 1,000,000 baht home. Those over 60 and retired will be exempt from Land and Home Tax. Those under 50, will be exempt with homes over 2,000,000 baht with incomes less than 15,000 baht per month. After all the additional amendments, they came up with less than 3 people making over 1,000,000 baht a month living in a 800,000 baht home. built in the late 1950's handed down from the family. Seeing no revenue, it was shelved by the PM. Simple solution, a

1/2% tax on all properties to include Condo's. No exclusions for anyone for any reason. based upon 1/2% per 500,000 baht

valuation. fair and just for all.

How far did the flat tax get in the US? Why was it defeated? The rich are even more influential here.

[FangFerang]

90% of all the salable land in Thailand is owner by a group of people numbering less than 100.

Elites pay tax for using the land as a serf-stylke sharecropper scheme get taxed? My god, next they will suggest registering all cars so the hi-sos have to confess to avoiding import duties.

Does anyone else remember the 100 Very high-end cars that disappeared right after the coup? No investigation, no follow up -- those cars are being driven around Bangkok right now.

Elitist pigs.

[96tehtarp]

This action, the "putting on hold" of the land tax begs a question. Do these people know what they are doing?

[cocopops]

Should be (a) levied on the undeveloped value of the land and ( b ) levied on all land regardless of the financial status of the owner or how many other plots they own.

Condo owners charged pro-rata based on the value of the dirt their condo building is sitting on top of.

Edited March 13, 2015 by cocopops

[Suradit69]

Flip flap flop, the Thai way.

Yes only in Thailand do politicians flip-flop and worry about getting re-elected. I'm sure they never do that it in whatever country you fled from.

[Suradit69]

This action, the "putting on hold" of the land tax begs a question. Do these people know what they are doing?

Well not every country has wise politicians who do such fail-proof things like forming the Eurozone or waging trillion dollar wars without any funding.