Friday, July 10, 2020

Housing developers fret over new tax on unsold units

May 30. 2020
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By THE NATION

The real estate sector Is worried about the impact of a new tax the government plans to levy from August 1.
Property firms have already suspended the launch of new projects in 2020 due to the impact of the Covid-19 crisis.

Under the Land and Building Tax Act BE 2019, more taxes will be collected from property projects with unsold units, impacting businesses and the property market.

The act aims to encourage the productive use of land and improve tax collection, as well as control the supply of condominiums and houses.

Developers are worried about the additional cost they will have to bear from unsold units once the new tax is levied.

Vichai Viratkapan, Real Estate information Centre acting director, said that unsold houses and new units were worrying. Unsold units in Bangkok and nearby provinces could increase to around 80,563 in 2020.

According to the act, units which are not sold within three years will be taxed at the rate of Bt3,000 per Bt1 million, or 0.3 per cent, of each unit's price, he added.

“I will propose to the relevant agencies to delay the tax collection, in order to help those entrepreneurs,” he said.

 

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