Thailand considers reform of land, building tax
Thailand’s Finance Ministry and Interior Ministry have pledged to improve the land and building tax to prevent a negative impact on the public amid several economic challenges.
Bangkok (VNA) – Thailand’s Finance Ministry and
Interior Ministry have pledged to improve the land and building tax to prevent
a negative impact on the public amid several economic challenges.
Paopoom Rojanasakul, Secretary to the Finance Minister, was quoted by local media as speaking at the annual property seminar on May 6 that the proposed improvements to the land and building tax aim to enhance both efficiency of collection and levy an appropriate rate, helping reduce hardships for people when economic conditions remain fragile.
He called on the Bank of Thailand to ease loan-to-value (LTV) regulations to stimulate the real estate sector, which would help to propel the economy.
In addition, he urged financial institutions to relax their credit conditions, allowing people greater access to credit. Financial institutions need to embrace increased risk, finding a balance between risk and stability, said Paopoom.
He said the Finance Ministry acknowledges the importance of the real estate market, implementing stimulus measures for the sector this year including both tax and financial policies.
The tax measures include a deduction in personal income tax for income paid on interest for loans used to purchase, lease or build residential properties, with a maximum deduction of 100,000 THB (2.700 USD).
In addition, a 90% reduction of the land and building tax burden is offered to owners of land or buildings under development for up to three years, aiming to ease the tax burden during construction.
The government also extended the land and building tax collection period this year for an additional two months and reduced the transfer fee from 2% to 1%, while lowering the mortgage fee from 1% to 0.01% to bolster the housing market.
Another state financial measure is the "One Million Homes Project", aiming to help homebuyers find affordable homes. The Government Housing Bank offers flexible loans with a budget of 20 billion THB (550 million USD), providing mortgages of up to 1.5 million THB per borrower for a maximum repayment term of 40 years, with a fixed annual interest rate of 3% for the first five years.
The "Happy Life Credit Project" supports Thais buying their own homes with loans starting from 2.5 million THB per borrower. The maximum loan term is 40 years, with an average interest rate of 2.98% per year for the first three years and a minimum interest rate of 1.95% per year in the first year./.
Paopoom Rojanasakul, Secretary to the Finance Minister, was quoted by local media as speaking at the annual property seminar on May 6 that the proposed improvements to the land and building tax aim to enhance both efficiency of collection and levy an appropriate rate, helping reduce hardships for people when economic conditions remain fragile.
He called on the Bank of Thailand to ease loan-to-value (LTV) regulations to stimulate the real estate sector, which would help to propel the economy.
In addition, he urged financial institutions to relax their credit conditions, allowing people greater access to credit. Financial institutions need to embrace increased risk, finding a balance between risk and stability, said Paopoom.
He said the Finance Ministry acknowledges the importance of the real estate market, implementing stimulus measures for the sector this year including both tax and financial policies.
The tax measures include a deduction in personal income tax for income paid on interest for loans used to purchase, lease or build residential properties, with a maximum deduction of 100,000 THB (2.700 USD).
In addition, a 90% reduction of the land and building tax burden is offered to owners of land or buildings under development for up to three years, aiming to ease the tax burden during construction.
The government also extended the land and building tax collection period this year for an additional two months and reduced the transfer fee from 2% to 1%, while lowering the mortgage fee from 1% to 0.01% to bolster the housing market.
Another state financial measure is the "One Million Homes Project", aiming to help homebuyers find affordable homes. The Government Housing Bank offers flexible loans with a budget of 20 billion THB (550 million USD), providing mortgages of up to 1.5 million THB per borrower for a maximum repayment term of 40 years, with a fixed annual interest rate of 3% for the first five years.
The "Happy Life Credit Project" supports Thais buying their own homes with loans starting from 2.5 million THB per borrower. The maximum loan term is 40 years, with an average interest rate of 2.98% per year for the first three years and a minimum interest rate of 1.95% per year in the first year./.
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