The bill sets ceiling rates of 0.2% of appraisal value for land used for agricultural purposes, 0.5% for residences, 2% for commercial use and 5% for vacant or undeveloped land.
For vacant or undeveloped land, the tax rate will be imposed at 1% for land left vacant or unused for 1-3 years, 2% for 4-6 years and 3% for more than seven years. The bill is expected to take effect next year.
The Fiscal Policy Office recently estimated that the land and buildings tax would generate 64 billion baht a year for local development. Of the total, 60 billion baht will be contributed by commercial buildings and land and 4 billion by residences.
The source said the Finance Ministry assured local administrative organisations that income from the new tax will not be lower even though homes and agricultural land with appraisal prices not exceeding 50 million baht will be tax-exempt.