Big jump in land revenue eyed
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THE TREASURY DEPARTMENT targets Bt20 billion to Bt30 billion in revenue per year if government land is commercially developed to full potential and assessment of 32 million plots of land is complete.
Currently, its revenue from land leases and development is about Bt2 billion per year.
Chakkrit Parapuntakul, director-general of the department, said it would add value to the state-owned land, particularly large projects that have been facing delays, through commercial development.
This year, the department will attempt to monitor large commercial projects with weekly progress reports, while accelerating implementation of all projects including those in Mo Chit and near Queen Sirikit National Convention Centre (QSNCC).
For the development project in the Mo Chit area, a committee under the Joint Investment Act has formed a working group to negotiate with a partner in the project on changes of construction design and compensation. If solutions are reached, these will be proposed to the Cabinet for more investment.
The project in the QSNCC area has been under negotiation on the construction design as changes in Bangkok’s urban planning have made it impossible to build a hotel using the previous design.
The department has also coordinated with the “superboard” to relocate the fish bridge to an area in Samut Prakan, and this will allow the department to develop the area.
The department also plans to develop land held by the State Railways of Thailand in Bangkok’s Makkasan area if the SRT hands it over for long-term rental in exchange for paying down the railway agency’s debts.
Chakkrit said that despite the government’s postponement of consideration on a land and building tax, the department continued to assess land prices across the country in anticipation of such a levy.
There are about 32 million state-owned plots of land nationwide. So far 8 million have been assessed and the rest will be assessed within one year.
“Assessment of each plot will be used as the basis for calculation of rent for the department’s land,” Chakkrit said.
“If we develop the land commercially after the assessments are complete, our tax base will be upgraded and more income will be generated. Now we make only Bt2 billion in revenue [annually]. And I expect the department to earn no less than Bt20 billion to Bt30 billion per year.”
Currently about 300,000 parties lease state-owned land.
