The Treasury Department will rejig management of 12.5 million rai of state land after a survey showed the state agencies occupying it are mostly misusing the land for their own interests.
The plan comes as the department prepares to announce new land price appraisals nationwide which show developers have been quick to cash in to the knock-on economic effects on electric train routes in the capital.
Land values have increased 15% on average and up to 150% for land along electric rail route projects.
Chakkrit Parapuntakul, director-general of the department, said Sunday that most of the 12.5 million rai of state land occupied by state agencies was being misused for commercial purposes.
"Instead of using the land for the common interest, many state agencies use the land for their own interests, including for taking care of subordinates and agencies staff.
In some cases, that land hardly makes any money, and when it does, usually stays with the agency concerned.
"Revenue gained from the use of that land has never been returned to the state," Mr Chakkrit said.
He said the department wants to reorganise this type of revenue to bring it into the national budget.
Mr Chakkrit said if any organisations wanted to exploit the land for commercial use, they would have to enter new agreements with the department.
The change will be proposed for cabinet approval soon.
Mr Chakkrit said that of the 12.5 million rai of land under the supervision of the department, only 100,000 rai was allocated for commercial use directly under the Treasury Department's supervision, which brings 4.5 billion baht a year into the state's coffers.
The country would make more money if the pattern of ownership of state land was rearranged, Mr Chakkrit said.
The department has asked more than 500 state agencies to return more than 8,000 rai. However, only 1,600 rai has been regained so far.
Meanwhile, the department's new land price appraisal nationwide, which will be announced by the end of this year, show land prices in areas where electric rail projects are planned have surged between 75% to 150% compared with four years ago.
The highest increase of 100%-150% applies in those areas where train stations are planned.
According to the new appraisal, Silom has the most expensive land where prices have increased to one million baht per square wah from 850,000 baht per square wah.
Prices in the Ratchadamri area rose to 900,000 baht per square wah from 600,000-700,000 baht per square wah.
Aside from land close to rail routes, land prices have also doubled in special economic zones in six provinces.
The new appraisals of land prices will feed into the development of land under the department's care and also serve as a base to calculate fees of real estate trading during 2016 to 2019.
Mr Chakkrit said of all 32 million plots of land nationwide, prices of 12.6 million plots have now been assessed.
Collection of inheritance tax and land tax would improve once the assessment job was complete.
Taxes and transaction fees will also increase by about 30% which will bring in 30-40 billion baht in revenue per year.
Mr Chakkrit said the cabinet will be asked to approve the land development plan once it is complete.