New government considers 50% land tax cut, shelves 99-year leasehold plan

The new Thai government is reviewing proposals from the property and construction sectors to stimulate the market amid ongoing economic slowdown.

Siripong Angkhasakulkiat, deputy leader of the Bhumjaithai Party, said on Tuesday that discussions are underway with various business sectors before the government officially takes office, aiming to gather feedback and perspectives to design suitable measures.

He said proposals from property and construction groups include a 50% reduction in land and building taxes for 2026, to be applied for one year or until the economy recovers. These measures would be considered alongside other short-term initiatives intended to boost purchasing power and support economic recovery.

“Right now, we are looking at measures that can be implemented immediately and have a rapid impact on the economy. The property sector is linked to many other industries, so targeted measures are essential,” Siripong said, noting that feedback from both the business community and members of parliament has emphasised the prolonged slowdown in the property sector.

Regarding the previously proposed 99-year leasehold law, which would allow 99-year leases with land transferred to the Treasury Department in exchange for usage rights, Siripong confirmed the government will not pursue it.

“This government has a limited mandate, and we will not push legislation still under study, as there is insufficient time. The proposal has also sparked debate among MPs and society, so it will not be pursued further,” he said.

Other proposals from the property and construction sectors include:

• Expanding the role of the Thai Credit Guarantee Corporation (TCG) to guarantee residential property loans for individuals, in addition to existing guarantees for self-employed professionals, online merchants, restaurateurs, and commercial property buyers.
• Introducing short-term measures in the final four months of 2025 to stimulate the property market, such as lowering transfer and mortgage fees to 0.01% for properties exceeding 7 million baht, extending the “Baan Dee Mee Down” housing project, and reducing corporate income tax to encourage domestic demand while monitoring foreign nominee participation in property and construction.
• Accelerating the disbursement of pending construction payments and improving control over low-quality imported building materials.

These initiatives aim to address the prolonged slowdown in the property sector and stimulate both the housing and construction markets in the short term.