Finance Minister Sommai Phasee still insists tax will be collected on both land and buildings, saying the tax burden has been eased significantly by the most recent rate proposals. The land and buildings tax will not be a land tax alone, he said yesterday.
Mr Sommai's comments came after Prime Minister Prayut Chan-o-cha last week instructed the Finance Ministry to study the possibility of imposing tax only on land to alleviate homeowners' tax burden. Gen Prayut earlier decided to shelve the ministry's bill on land and buildings tax for further study, citing an economic slowdown and the possible effect on low-income earners.
The tax is among the government's priorities, seeking to narrow economic disparity, boost the government's revenue stream and improve land use.
Mr Sommai said a home with an appraised value of 4 million baht would be subject to a mere 1,500 baht in land and buildings tax a year, less than pay TV fees. Based on the ministry's recent proposals, homeowners would be charged 0.1% of appraised value. Land for agricultural and commercial use would be taxed at 0.05% and 0.2%, respectively. Houses with an appraised value of up to 2 million baht would receive a 75% tax allowance, translating into a 250-baht tax payment for every 1 million.
ng PCL. All rights reserved. Houses with an appraised value of up to 2 million baht would receive a 75% tax allowance, translating into a 250-baht tax payment for every 1 million.
PCL. All rights reserved.