Finance Ministry handled land tax issue poorly

SATURDAY, MARCH 14, 2015
Finance Ministry handled land tax issue poorly

Re: "PM shelves land tax", News, March 13.

What failed? First, the ministry was self-centred and devoid of empathy because of the drafters’ authoritarian background.
Second, taxing one’s home, no matter how small the sum, is stretching one’s authority too far. Ownership of an abode is one of the four necessities in life – food, clothing, home and medicine. Taxing home ownership is viewed by many as sinful.
Third, the aim of the law should have been emphasised as correcting the outdated Household and Land Tax BE 2475 (1932) that has hardly been amended but is riddled with loopholes for corruption.
Finally, the repeated claim for social equality is empty for many “poor” owners in the Sukhumvit area and other prime areas. They may appear rich but are poor with liquidity in cash. They were the loudest, but behind-the-scene protesters, that may have temporarily caused this halting.
If the ministry had not fumbled this issue over the past nine months, it would not have ended in this temporary halt and Finance Minister Sommai Phasee would have been lauded as the most far-sighted and courageous finance minister ever.
It could have succeeded with flying colours if they had started with exemptions of this tax on homes jointly owned by couples. Other property for business or speculative purposes shall be taxed as intended.
In addition, it is a reform to amend the archaic and corrupted law of 2475. No one would have criticised what would have been a noble action when one knows of more than 10 individuals owning land of more than 10,000 rai. Never mind, there is always next time.
Songdej Praditsmanont
Bangkok