Land tax bill to be enforced despite opposition: economist
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The junta is expected to successfully enforce the land and buildings tax bill despite some opposition, said an economist.
Tim Leelahaphan, Thailand economist of Maybank Kim Eng Securities, said that there would still be public opposition to the draft.
"However, we believe the land and buildings tax is expected to ultimately sail through the junta. The military could claim a change in details has already been made from those proposed by the previous economic team. Also, a lower personal income tax could offset any higher burden from the new land and buildings tax," he said in a research note.
The Cabinet today approved the bill which seeks to levy taxes on nationwide plots accordingly to land use purposes.
Under the new law, first home valued below Bt50 million will be waived from tax while the maximum 0.5 per cent rate is applied for the second home.
Kim Eng estimated that 90 per cent of homeowners would be unaffected by the new law. The tax will cost the payers around Bt1,000 for every Bt1 million above the Bt50 million threshold.
The maximum 0.2 per cent rate will be levied on agricultural land and 2 per cent on commercial and industrial land.
The 5 per cent rate will be applied to undeveloped land in the first three years and the rate will be doubled if the land remains undeveloped in the following three years.
