Finance Ministry mulls land and building tax cuts
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Finance Ministry mulls land and building tax cuts

Finance Minister Arkhom Termpittayapaisith (Photo: Finance Ministry)
Finance Minister Arkhom Termpittayapaisith (Photo: Finance Ministry)

The Finance Ministry is considering a proposal to reintroduce a reduced land and building tax over the next two years, says Finance Minister Arkhom Termpittayapaisith.

The proposal was made to the ministry by a major Thai business trade group, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).

Mr Arkhom said the ministry needs to discuss the proposal with the Interior Ministry, as the latter oversees the local administration offices that collect such taxes.

If the measure is adopted, the local administration offices will lose revenue and the government would have to seek revenue from other sources to compensate them, he said.

The government allowed a 90% cut to the land and building tax in 2021 following a 50% reduction in 2020, which were both intended to mitigate the impact of the pandemic on the economy.

Land and buildings are currently subject to the normal tax rates, which already offer some reductions.

According to the JSCCIB proposal, land and buildings that are in the development process or are unsold should be subject to the same lower tax as residential projects.

The group said the government should impose reduced taxes on land and buildings during 2023-2024. The reduced tax should have a step-up rate -- a 75% discount in 2023 and a 50% cut in 2024.

The JSCCIB said the government should also waive fines and interest for those who failed to pay the tax in 2022, and allow them to make instalment payments in 2023.

Land owned by individuals and used for agricultural purposes is not subject to the tax if the land is worth less than 50 million baht.

In addition, individuals who own buildings worth less than 10 million baht do not have to pay the tax.

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