As reported by The Nation and Bangkok Post, 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. The proposal is part of the government’s agenda to reduce economic inequality, improve land distribution and improve use of land across the nation.
Speaking at a seminar held by Thammasat University’s Faculty of Economics this week, Finance Minister Sommai Phasee 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. The government would need to first re-evaluate land prices nationwide for 32 million plots, 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,” the minister explained. “The tax base will be expanded. For instance, an owner of a 100 to 150 square wah house, valued at between THB 3 million and THB 4 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.”
The Finance Ministry also plans to reform other taxes, including inheritance, customs and excise, as well as to close loopholes in value-added tax collection. Other ideas for boosting the country’s revenue were raised by Energy Minister Narongchai Akrasanee, who said that increasing the diesel excise tax to THB 4 a litre would boost tax revenue by THB 80 billion per year. Also, Agriculture Minister Pitipong Phuengboon na Ayudhaya said he might reinstate a plan to introduce water usage fees.
