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Cabinet Approves Five Measures

By on Oct 16, 2015 in Property News, Residential

The Cabinet yesterday approved the Finance Ministry’s five proposals to boost business sentiment, accelerate the government’s venture-capital scheme, help low-income earners buy their first home and rev up the economy in the near term.

“These measures should benefit businesses and the economy,” said Somkid Jatusripitak, the deputy prime minister in charge of economic affairs.

News-nation_14oct

Real estate is a huge industry with a high multiplier effect on the economy through many other business activities, he said.

“We introduced such measures back in 1997 [during the Asian financial crisis]. The measures back then involved a tax measure that was specifically for one business, but the recently introduced measures only involve the demand side and the low-income home-buyer by helping to lower their financial burden in terms of transfer and mortgage fees.”

Finance Minister Apisak Tantivorawong said reducing the transfer and mortgage fees to 0.01 per cent for six months would cost the government about Bt15 billion in lost tax revenue. However, the government would gain that back when the measures start to spur economic activities.

Before the Cabinet’s approval, housing transfer and mortgage fees were 2 per cent and 1 per cent of appraised value.

The Bt10-billion budget for the GH Bank to provide housing loans to low-income earners is estimated to help some 9,000 households whose loan applications had been turned down.

The conditions imposed for the loans will be decided by the GHB, he said.

Greater Bangkok has homes for sale worth Bt120 billion that could benefit this quarter from the stimulus package, especially the lowered fees. About Bt80 billion of the total is condominium units and Bt40 billion is detached houses and townhouses.

Source: The Nation – 14 October 2015

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