Windfall tax to be proposed for cabinet approval soon

[webfact]

Windfall tax to be proposed for cabinet approval soon

 

 

BANGKOK: -- The Ministry of Finance is now considering to propose what it called “windfall tax” on property owners benefited from the government’s infrastructure projects.

 

One of the infrastructure projects it pointed finger to is electric train where land prices along the electric routes are marked up several folds.

 

Finance Minister Apisak Tantivorawong said the ministry is studying the windfall taxation on owners whose land price is inflated following the infrastructure development.

 

Full story: http://englishnews.thaipbs.or.th/windfall-tax-proposed-cabinet-approval-soon/

 

-- © Copyright Thai PBS 2017-06-23

[Baerboxer]

Presumably this is also to stop politicians buying up cheap tranches of land and then routing things to massively increase the values.

 

Not that that has ever happened of course. Just a precautionary measure.

[Srikcir]

6 hours ago, webfact said:

the windfall taxation on owners whose land price is inflated following the infrastructure development.

The "killer" to this tax is that it will apply to the higher value even if the land isn't immediately developed.  Delay in development adjacent to a new rail track is not an unusual situation given capital requirements for development, economic viability (aka demand) for developed purpose and delayed off-track infrastructure to support development. If this tax is approved, it should be only a nominal increase until business revenues justify otherwise.

[Chama1]

Does it seem like taxes are being placed on everything? Even breathing may be taxed next. Must be warming up to but another sub?

[William C F Pierce]

The full story only says it will apply if or when the land is sold. If not sold, no windfall for the government. Government is only assuming all the owners along the infrastructure route are going to sell their land. Some will want to use it for their own business use or build a home.

Edited June 23, 2017 by William C F Pierce