Finance Minister Sommai Phasee said he plans land, property tax reform Thailand
The Finance Ministry will submit its land and property tax reform proposal to the Cabinet before year-end, which should boost tax revenue collection from landowners by six or seven-fold, Finance Minister Sommai Phasee said.
Speaking at a seminar held by Thammasat University’s Faculty of Economics yesterday, Sommai said he planned to reform many taxes, including inheritance, customs and excise, as well as close loopholes in value-added tax collection.
He also pointed out that the new property tax would contribute the most to state revenue, though it would not be implemented until 18 months after approval as the government needs to re-evaluate land prices nationwide and reappraise official land prices to bring them closer to their market value.
“We will use satellite information to collect tax on a plot-by-plot basis. The appraised prices should not be too far below the market prices,” he said. “The tax base will be expanded. For instance, an owner of a 100 to 150 square wah house, valued at between Bt3 million and Bt4 million might pay more for his car registration than for property tax each year. But owners of commercial property and unused land will pay more.”
Sommai said the Excise Department is also looking for innovative and fresh ideas to raise income, adding that tax reform would help boost the country’s revenue and cut inequality in society.
Energy Minister Narongchai Akrasanee said raising diesel excise tax to Bt4 a litre would boost tax revenue by Bt80 billion per year. Agriculture Minister Pitipong Phuengboon na Ayudhaya said he might reinstate a plan to introduce water fees as Thailand would most certainly face a water shortage in the next five to 10 years.
Credit: The Nation