Proposed land tax called back for 'review' by economic team, says new Thai FM

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Proposed land tax called back for 'review' by economic team, says new finance minister
ERICH PARPART
THE NATION



BANGKOK: -- THE LAND and building tax, which had been on its way to the Cabinet for approval before the recent reshuffle, will be called back for a further review by the Finance Ministry and the revamped Council of Economic Ministers, the newly-appointed finance minister said yesterday during his first day on the job. Apisak Tantivorawong said "many processes and details" could be revised, but he did not elaborate.

His predecessor, Sommai Phasee, said last week that he and former deputy prime minister MR Pridiyathorn Devakula had signed off on the draft bill before the reshuffle and it had been waiting for Cabinet approval.

Before the reshuffle, the previous Council of Economic Ministers had managed to push through the inheritance tax while maintaining the value-added tax at 7 per cent for another year, but the fate of the land and building tax will now be determined by the new economic team.

According to the draft bill, if nothing significant changes, land for agricultural purposes will be subject to a maximum 0.25-per-cent tax, residential property to 0.5 per cent and commercial property to 2 per cent. Idle or vacant land will be charged at a progressive rate every three years up to 2 per cent of appraised value.

The grace period for enforcement has been set at two years. This tax will replace the existing land and household tax and municipal tax. The maximum rates still stand under the draft bill, but the real tax collected may be lower than the maximum.

After the grace period, the real-estate tax will be gradually implemented. In the third year, taxpayers will pay only 50 per cent of the required tax from the act, and in the fourth year, only 75 per cent - unless there are major revisions.

Meanwhile, Apisak said new stimulus measures to help the grassroots economy would be sent for Cabinet approval shortly. He was again short on details, except to say the stimulus "will not be in the form of a cash handout".

"Farmers are not the only group that is suffering from the economic slowdown, as there are low-income earners in the capital that are suffering also," he said.

The measure "should be able to support the economy from slowing down any further" and it will be introduced via state banks' mechanisms within a month, the new minister said.

Source: http://www.nationmultimedia.com/business/Proposed-land-tax-called-back-for-review-by-econom-30267331.html


-- The Nation 2015-08-25

[tbthailand]

wow, that didn't take long...

[ColdSingha]

seems to me the only thing this junta is any good at is stifling free speech and raising taxes

[Prbkk]

seems to me the only thing this junta is any good at is stifling free speech and raising taxes

That would be stifling free speech and raising taxes, the latter only so far as it does not adversely affect its struggling billionaire backers

[timber]

Well despite the negative comments I see, this as a positive step. The has to be something done about the rich sitting on prime land waiting for opportunities to make a big buck.

In business the JIT management means you are losing money by sitting on inventory, There are millions of hectares of prime land in Thailand that are unproductive. The country

can't afford this. In North America these taxes help support the school systems, mind you, there needs to be assistance from the Stale also. Like everything else in life, use it

or lose it.

[Srikcir]

"The grace period for enforcement has been set at two years"

????

What's the point of a tax if the government doesn't enforce its payment? Either a tax becomes law or it doesn't.

Maybe the new economic team will eliminate the grace period.

[Baerboxer]

"The grace period for enforcement has been set at two years"

????

What's the point of a tax if the government doesn't enforce its payment? Either a tax becomes law or it doesn't.

Maybe the new economic team will eliminate the grace period.

Got to give all those amply rich billionaires time to find the loopholes in the law and take necessary actions so they won't actually have to enforce anything.

[wolfmanjack]

primary residences should be exempt. I am really against property taxes that could potentially take property away from poor people that have owned property for generations.

It happened to my grandmother and my mother in the USA.

While my father and grandfather were still alive they received enough benefits to pay taxes but when my grandfather and my father died the befits were reduced so much they could no longer afford the property taxes in homes they had lived in most of their lives.

[jaywalker]

"many processes and details"

Keeps the guv't drones busy chasing their tails.