Residences and land for personal farming will be exempted. Landholders who sit on land for long-term capital gains without developing will be penalised.
Today's article is taken from a larger article which can be found here.
Make sure to read previous important Bangkok Post articles on the proposed land and building tax (See article #1 (29-04-2010), #2 (05-02-2009)).
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Korn: Land tax would hit only a few by Wichit Chantanusornsiri
An exemption level for the new land and building tax at 1 million baht would essentially waive tax liability for 90% of all properties in the country, says Finance Minister Korn Chatikavanij.
The Council of State is currently vetting the proposed tax law, which the government hopes to introduce to Parliament in the current session before the end of the year...
...Mr Korn, speaking at a public hearing on the new tax law, said that in principle, exemptions would also be given for housing units and property used as a personal residence and land used for personal farming.
The proposed law features a three-step tax rate, with commercial and industrial properties subject to an annual tax of up to 0.5% of the value of land, buildings and properties, residential property 0.1% and agricultural property 0.05%. Tax rates would be set by a separate committee up to the maximum rate allowed under the law.
The law also allows for tax rates to increase to penalise landholders who do not develop their properties.
In large provinces, such as Bangkok and Phuket, land is controlled by a few people, with 10% of all land held by the top 50 landowners.
In Bangkok, private landholdings cover 900,000 rai by 140,000 owners, with the top landowner controlling 14,700 rai alone.
(Source: Economics, Korn: Land tax would hit only a few, 90% of properties might be exempted, 01/10/2010, Wichit Chantanusornsiri, link)
capital gains - profit from selling property or other investment held for a period of time
exemption - permission to not have to do something, such as making a payment, following a rule, etc. ข้อยกเว้น
land and building tax - property tax, tax paid on land and buildings that a person or company owns (See Wikipedia)
essentially - for the most part ที่สำคัญที่สุด
waive - give permission not to do something
liability - (legal) responsibility for something or someone ความรับผิดชอบ
tax liability - the amount of money that a person or company owes the government in taxes that they must pay
waive tax liability - when the government says you don't have to pay taxes
Council of State - the group of legal advisors that provides advice to the Prime Minister's cabinet on the legality of actions they are planning to take
vetting - examining something or someone carefully to make certain that they are acceptable or suitable ตรวจสอบ
proposed - suggested (but not yet chosen or decided upon)
current - of the present time ปัจจุบัน
hearing - an official meeting which presents the facts of some issue before a decision is made
public hearing - a hearing that is open to the public, the public can listen and respond
in principle - a plan is possible to do (at least in theory) but has not been tried or proven yet
housing units - one home in a group of many homes
property - pieces of land
residence - a place where someone lives ที่พำนัก ที่อาศัย
three-step tax rate - three different taxes for land of different values (tax is percentage of value)
commercial - for business purposes
annual - happening once a year ประจำปี
residential - houses for families to live in (not businesses) บริเวณที่พักอาศัย
maximum - the most possible ที่สูงสุด ที่มากที่สุด
penalise - punish for breaking a rule or law
landholders - land owners
develop properties - build something on land (not just leave land empty and unused)
landholdings - land owned by people
private landholdings - land owned by individuals and their businesses (not the government)