Tax break for first time homebuyers approved
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Deputy Finance Minister Boonsong Teriyaphirom said the Cabinet has approved a tax break for first time homebuyers.
The home price is capped at Bt5 million, and buyers could get a tax deduction of up to 10 per cent of the home price. Residential units include new homes, condominiums and detached townhouses but do not include resale homes.
The transactions must be made between September 21 this year and December 31 next year.
Homebuyers will get the tax deduction for five consecutive years, starting next year and 20 per cent of tax deduction from personal income tax payment each year.
The Revenue Department said the tax cost is estimated to be Bt1.7 billion.
Critics have criticised the scheme for being designed to help high-income groups instead of mainly those with low incomes. They say the government should have capped home prices at Bt1 or Bt2 million. Some say the government need not boost the property market at this time as the economy continues to expand.
