Blow for the Thai property industry as Government declares no more reduction in land and buildings tax
Arkhom Termpittayapaisith, Thailand’s Finance Minister announced on January 17th that his ministry is ruling out the likely hood of any reduction in 2022 in the land and buildings tax.
Apparently, relief had already been granted for two years and all further reductions would be a financial burden for the government.
The minister added that a 90% reduction in land and buildings taxes granted in 2020 and 2021 had already cost the government about Bt30 billion a year in lost revenue, which is an extremely high figure to manage.
The Finance Ministry has suggested that there be no further tax cuts and the legal rate be restored this year, he said.
This will be a blow for the Property industry already suffering from the pandemic.
The land and buildings tax are collected by the local government organisation.
The actual figures collected is then treated as local revenue, which is reinvested in developing that locality.
When the government announced a 90% reduction in the land and buildings tax in June 2020, the Finance Ministry had to find money to compensate local governments for lost revenue.
Previously, the government had postponed the deadline for residents of land and buildings to pay this tax from April to August.
The usual tax will now be paid in April, starting 2023.
Source: https://aseannow.com/topic/1247102-blow-for-the-property-industry-as-government-declares-no-more-reduction-in-land-and-buildings-tax/
