Thursday, December 12, 2019

NLA agrees on new land and property tax rates

Nov 16. 2018
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By The Nation

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After 19 months for deliberation, the National Legislative Assembly unanimously voted on Friday to pass new land and property tax rates which will come into effect on January 1, 2020.

The new tax rate is 0.3 per cent for a residential unit worth more than Bt50 million, property worth below Bt50 million is exempt. However, if a house owner does not own land, the tax exemption will apply to a house worth no more than Bt10 million.

Estates being used for agricultural purposes will be subject to 0.15 per cent rate of the appraisal value. Farmland worth no more than Bt50 million is exempt.

Commercial use property will be taxed at 1.2 per cent.

Vacant land will be taxed at 1.2 per cent and it will be subject to a tax increase of 0.3 per cent every three years if it remains unused. But the maximum rate is 3 per cent.

All these rates are ceiling tax rates, the committee chaired by Finance Ministry’s permanent secretary will decide exact rates later.

Critics say the new law would not help much in terms of government revenue, nor will it help to narrow the wide gap of inequality, due to tax exemptions.

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