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Thailand Property – Land and Buildings Tax Rate Set for Cuts

By on Mar 11, 2015 in Investment-Land, Property News

The Finance Ministry is looking at a reduction in the maximum rates of the land and buildings tax in a bid to soothe people’s nerves. A gap between the ceiling and the effective tax rates should be narrowed to three to four times from eight to 10 times, Finance Minister Sommai Phasee said yesterday. Unused or vacant land will be charged at a progressive rate every three years but not exceeding a maximum level of 4% of the appraised value. The ministry will later issue an organic law stipulating the effective tax rates. Mr Sommai said the ministry was reviewing whether a 2-million-baht exemption for the new tax was appropriate, as those who resided in provinces where land prices were low might not be liable for the tax.

The tax is expected to be enforced in 2017 after the Treasury Department has completed appraisals of 30 million land plots. It has completed assessments on only 7-8 million plots. The bill will replace the local development tax and house and land tax, which have been criticised as regressive since they are based on outdated appraisal prices and have many waivers.

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