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Land tax bill concern may result in tweaks

By on Jul 06, 2012 in Property News

The Finance Ministry is concerned the proposed land and building tax bill could be seen as a tool to help the rich and punish the poor, says the Fiscal Policy Office.

Director-general Somchai Sujjapongse said such a perception could derail the long overdue draft, under development for more than two decades.  The land and building tax bill was brought to parliament by the Abhisit Vejjajiva government but was not passed due to an early House dissolution.

Finance Minister Kittiratt Na-Ranong expressed his support for the bill early last month but asked the ministry to make some changes before it is sent for debate in parliament.

Although the bill, which imposes a higher tax rate for undeveloped land, is aimed at curbing land speculators, Dr Somchai said the rates under the new draft could be lower than those currently applied.

The current land and property tax bill imposes a tax rate of 12.5% of annual rent. The new bill proposes a rate of 0.05% based on the value of land and buildings on farmland, 0.1% for residential land and 0.5% for land used for commercial purposes.  “This means owners of big department stores or large-scale hotels could end up paying less in taxes under the new bill while the general public _ homeowners or farmers _ will pay a small tax after paying none before,” said Dr Somchai.

For the full article, visit http://www.bangkokpost.com/business/economics/301176/land-tax-bill-concern-may-result-in-tweaks

Source : Bangkok Post 6 July 2012

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