Thai Finance Ministry Proposes New Basis For Property Taxes

by Mary Swire, Tax-News.com, Hong Kong

18 October 2001

According to reports from Thailand, the Finance Ministry is about to present its Land and Property Taxes Bill to the government's decentralisation committee. The Bill is part of the Ministry's plan to help cut taxes for Thailand's poorest people, including changing the current tax rate of 0.025-0.095 per cent of property value to 0.025-1 per cent.

The Bill also enables regional administrations to collect the tax from people in their jurisdictions, which will go towards funding local projects. The higher rate will be imposed on industrial areas and the lower rate on residential districts, with agricultural regions being charged the lowest rate. State-owned property will be exempt.

Thailand's online daily news service, Business Day, quoted a source who wished to remain anonymous as saying: 'Local administrative bodies will have to decide how much tax they will charge each area. If they do not collect enough, their revenues will be affected. In contrast, if they collect too much, land owners will rebuke them.'

The source added: 'Under the current law, the land and property taxes are divided into five levels, with a rate ranging from 0.025-0.095 percent of the estimated property value. The central government imposes the tax on every province, based on their gross domestic products. The current legislation draws much criticism from the poor, who believe that it is unfair for them.'

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