Land and Property tax the new coming act in Thailand

As Thai  people are worry and doubt about this issue we

 should  make ourself  know more about these taxes.

Thailand has property tax that relate to land and building tax

but they are not real property tax which provide a little tax to

the tax system,they are :

1.Property tax according to act of property and land tax 1932,

which the rate is based on the annual values (use rental rate

per  year  as the value to calculate tax) impose at 12.5%

of rental rate per year from owner of premises.

2.Local maintenance tax according to the act of local

maintenance tax 1965 impose rate is based on medium

price of land at the rate set which is very low.

 

Owing to the fact that taxes must come from three base of :

1.Revenue base

2.Consumption base

3.Property base

Thailand taxes are mostly from revenue and consumption base

including the small amount of property tax and local maintenance

tax but real property tax base or Land and Building tax never use

before in our country.

Since 1978 the government try to push forward land and property

tax but 37 year later it still not finish yet.

The present cabinet by Prime Minister Prayut Chan-o-cha

recognize the important of property taxes (land and building tax)

which will decrease the difference in Thai society so he try to push

it as an act again.

 

People who must be in function to pay the new property

tax of land and building are the owner of land and building

 and people who make benefit from state land,in conclude all

unit of land and building must pay property tax according to

the new act.There are also exception not to impose property

tax from land and building which use for public benefits.

 

Act of property tax which will push to the cabinet in March

has setting rate like this :

Building Tax :

Building price <1,000,000    baht                     no tax

Building price 1,000,000-<3,000,000  baht     0.1%
          which abatement of allowance 50%

Building price >3,000,000 baht                        0.1%

The building price is based on cost estimate of Treasury

Department with deduction of depreciation rate that setting.

 

Land Tax :

Agricultural lands rate are                                    0.25%

Residential lands rate are                                      0.5%

Commercial and Waste lands rate are                   2.0%

The land price is also based on cost estimate of Treasury

Depatment

Both land and building tax are below the ceiling law rate

in order to decrease suffering from using the new act.

 

According to the facts that our country impose tax is below

the amount that it should be so the government can not make

the balanced budget which lead to loan and we must pay this

interest loan also either from revenue base or consumptiom base

Land and building taxes are based on theory that people

who are rich and own high value of asset should pay more

 tax to our country to decrease inequitable and make balance

of our society.

If land and building taxes become effective government

will have more money so they can allocate to build

infrastructure with will lead to more investment and

a better economic and comfortably to our normal life.

And this money can use to provide social welfare which

will make Thai people a better and happy life.

I think we should go along with this new act ,it is the

right direction that we can develop our country to

developing country in the future.