Thailand approves cuts on property tax, fees to ease virus impact

[snoop1130]

Thailand approves cuts on property tax, fees to ease virus impact

 

 

BANGKOK, Jan 26 (Reuters) - Thailand’s cabinet on Tuesday approved a cut on property tax and other fees for this year, foregoing revenue of about 41 billion baht ($1.37 billion) to help ease the impacts of its latest coronavirus outbreak.

 

The tax on land and buildings was cut by 90% while some registration and transfer fees were reduced to 0.01% from 1-2%, government spokesman Anucha Burapachaisri told a briefing.

 

“The cuts are appropriate for the current economic situation,” he said.

 

The tourism-reliant economy is expected to recover slowly this year due to the new outbreak, its biggest yet, which has spread to most of the country’s provinces.

 

Although Thailand’s infection numbers are relatively low, it has been hit by the global impacts of the pandemic.

 

Southeast Asia’s second-largest economy could grow a less than expected 3-4% this year after contracting 6% in 2020, the deepest in over two decades, Arkhom Termpittayapaisit told Reuters last week.

 

-- © Copyright Reuters 2021-01-26

 

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[Srikcir]

The tax and fees cut is perhaps meaningful to what might be a small segment of Thai society. But coming from the PM Cabinet while impacting the nation's next fiscal year budget?

Whatever happened to Parliament that is the legislative authority for creation and changes in the tax code? 

Already I believe the PM has unilaterally further deferred the 2018 Land and Building Act (or similar title) passed by the Parliament to go in affect in 2020 after a previous 1-year defferment. This act itself provided for a 3-year phase in (as I recall) before its full implementation. 

Either the Parliament needs to reaffirm its taxation and budgeting power or concede it to PM whose appointment required the vote by a Senate appointed indirectly by the former NCPO chief Prayut.

The bottom line is that there is a question as to whether the will and needs of the Thai people are being best served by the unilateral dictates of the Office of the PM rather than by an elected House. Where exactly do we see democracy in play in Prayut's execution of tax policy?

[Elkski]

You would think this should not apply for those properties over a certain value or owners over a certain income level.    Not for 2nd properties. I hear taxes in isaan are miniscule as it is.   This will have little effect for the ones who are hungry.   

Should be raising tax for the rich and supporting the poor at this time. And retraining those  workers who's tourists jobs will never come back.   Hauling off sillage so burning us reduced.  Hire people to report farmers burning.  Give rewards only for convictions. 

Edited January 27, 2021 by Elkski

[ExpatOne]

My wife and I reported farmers burning in Chiang Mai. Nothing happened. No police.

[tracker1]

Is this targeting mainly the wealthy ?

[mrfill]

The Isaan farming community will be partying tonight after this news......

[thaitero]

So selling/buying condo from now the transfer fee is 0.01% ???

If so, for how long time ?

[stubuzz]

You will find that these cuts apply to new properties only.

[Cricky]

I have been told that the discount is for Thais only.

Can anyone confirm?

 

Seems a bit rude if so

[Heng]

There's also an appraised value cut off (something like anything over 3 million and it's the standard tax rate... so unless you're buying a studio condo outside of town...) so it's certainly not a pure break for the "wealthy" (we seriously need a Republican Party here).