New land tax law may not be ready early next year

 

 

 

BANGKOK: -- The land and building tax law may not come into force early next year as earlier scheduled but this will not impact on the state coffers because the tax collected will go to local administrative bodies, said Deputy Finance Minister Visut Srisuphan on Friday.

 

The bill, he added, is now pending the consideration of the Council of State and is expected to be tabled to the cabinet this month before it is forwarded to the National Legislative Assembly for debates which will take between 4-5 months for the bill to become law.

 

The deputy finance minister said that even if the promulgation of the law is delayed, it will not impact on the state coffers because the land and building taxes to be collected under this proposed law will go to the coffers of local administrative bodies for local development.

 

Currently, land and building taxes collected amount to 30 billion baht a year and the amount is estimated to double after the promulgation of the new law which is aimed to discourage land speculation and to encourage the utilization of empty land.

 

Under the proposed land, land is classified into four types in accordance with their usages and taxes are levied accordingly.

 

Land for agriculture is to be taxed at 0.2 percent for land plots worth more than 50 million baht/plot. As for land for residential purpose, the first house which is worth less than 50 million baht will exempted from taxation, but for the second home, tax will be collected on progressive rate.

 

-- © Copyright Thai PBS 2016-10-07

My prediction - the law may be ready, but would be shelved for a few years. Why? The property market needs help to minimize a downswing...

It is often said there are only two things certain in life. Death and taxes. 

But there are three. The third one being that tax collected in Thailand will be mostly wasted one way or the other. Building out-of-date submarines would be the most impressive current example.

22 hours ago, webfact said:

even if the promulgation of the law is delayed, it will not impact on the state coffers because the land and building taxes to be collected under this proposed law will

And not go into the state coffers! That is cause and effect.

Certainly will be a windfall for the local administrative bodies who may not get the same share if and when distributed from the state.

2 hours ago, Srikcir said:

And not go into the state coffers! That is cause and effect.

Certainly will be a windfall for the local administrative bodies who may not get the same share if and when distributed from the state.

True but the monies they get from the state now will be reduced accordingly and surely deposited in a safe place.

Anyone can put a number on how many houses in Thailand worth more than 50M baht?

Sure there will be many, but how many?

Can't ever see this being implemented. The amart will never pay taxes on empty land. I'm not even sure how this even became a possibility?

How much do they collect and how much are they missing out on?