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Property taxes back on the table

Commonly discussed and long-proposed, land taxes appear to be back on the national government´s agenda.

Reported in the national press, Finance Minister Surapong Suebwonglee is expected to submit a new land and building law to the cabinet as early as September for consideration.

Taxes based on lease revenues are currently collected by the government, the tax being 12.5 percent. The new law, if passed by parliament, would give authority to the government to collect annual taxes on land and property, with the revenues, reportedly, being used to finance local administrations and their operations.

Dr Surapong was reported as saying, “Vehicle owners currently pay a tax each year. Why should property owners be any different?”.

The draft law incorporates a grace period of two years and would replace existing laws. The tax rate would be set at a maximum of 0.5 percent, based on current property valuations.