Friday , April 23 2021

Country tax Reduce overlap or worsen people.

Fireworks again … after the Taxes Act "Land and Buildings" were approved by the National Legislative Assembly (NIA) on Agenda 2 and 3 to form a "single roll" at the end of last week. Although earlier, many believed. "Close the door", the road was born!

But one day, Mr. Somkid Jatusripitak Vice Prime Minister has confirmed that policy. The Prime Minister called for the drafting of two laws before the election, one of which was the draft Land and Building Tax Act.

I have to dust out the law. "Single roll than"

Although Visut Srisuphan, Deputy Finance Minister, as Chairman of the Extraordinary General Assembly considered the bill, it would confirm the new law. The content of the "weaknesses" in the original. Still, there are still panic in many sectors that continue to see it. This team is a "two-edged sword" that affects how people live. Especially grassroots people who are affected will not be able to keep their last plot.

To clarify this. "Economic team" takes the opportunity to publish a new bill on land and buildings and interviews with those involved in the law:


13-year government with 25 "country tax"

It's a great way to get a feel of what's happening. "Economic Team" Says New Country Tax Act Pass The last NFC on November 16th. Started studying this law 30 years ago and went through the winter thirteen to the government for a total of more than 25 years, so it came out.

The claim that the driving force for the law is to increase the efficiency of revenue. Reduce social injustice to justice. "Land and building taxes are a historical tax reform. There are clearly defined types and prices of land tax. Reduce local discretionary discretion"

However, the Ministry acknowledged that the tax would benefit local governments to collect revenues. As a result of the law, the government has collected about 10,000 billion baht in revenue from the current tax revenue of approximately 29,000 million baht.

"The law does not affect low income farmers and SMEs. Previously, the Commission has reduced the duty rate reduced to 40%, including tax exemption for the first house to a maximum of 50 million baht, and the other house has reduced the duty rate. Only 200 baht left."

New land tax rate

The core of the new Land Tax Act There are four types of land use: 1. Farmland The maximum tax rate is 0.15% and the landowner is classified as an individual and a legal person. The tax rate is divided into 5 steps: 0-75 million baht, accumulated 0.01%, 75-100 million baht, total 0.03%, 100-500 million baht, collected 0.05%, 500-1000 million baht, collected 0.07% And from 1,000 million baht up to 0.1%. But if the individual has a farmland worth a maximum of 50 million baht will be freed from the surplus of 50-100 million baht, collected 0.01 (only 100 baht). See tax rates in the table)

2. Residential area The storage fee is 0.3% divided by the 4-storey fee. If it is 0-50 million baht, collect 0.02%, 50-75 million baht, 0.03%, 75-100 million baht, 0.05% and 100 million baht up 0.1%. If you own a house and land worth more than 50 million baht will be exempt from tax. The main building is the owner. The second house is taxed from the first baht to the next.

3. Land for commercial purposes Set a ceiling of 1.2%, divided into 5 steps from 0.3-0.7%. The tax burden for commercial land and buildings worth 50 million baht will be 150,000 baht / year (0.3%). The hospital and the arena have the burden of mitigating maximum tax deductions of up to 90% of the assessed value. The tax charge begins 0.3% and increases by 0.3% every three years but up to a maximum of 3%. However, there is a transitional provision to relieve tax burden for 4 years.

"Rowhouse – Rice Curry" progesterone!

If you consider that the new Land Tax Act is superficial. All parties believe that it will not affect how people live in general. Since most of the 90% land held in the price does not exceed 5-10 million exceptions.

The Ministry of Finance has also taken measures to reduce the impact on farmers and farmers. Exemptions from agricultural taxes for persons who may have multiple plots if they are in the same city. The value of no more than 50 million baht is exempt. To prevent the interpretation of "Sri Thananchai" by local government organizations.

But what lies under the law of the treasury has not yet been clarified for the people. Initially, our homes were not used in residential buildings. Or do business So we see people coming home to rent rooms. Home to do the store. Thunderbirds full food town.

The new Land Tax Act has clearly divided the use of land for tax purposes.

This means that when it comes to assessing the new structure of the commercial building, the store owned a shop, laundry, laundry. Or just open a small store, whether it is located in Soi Saladaeng, Silom area, Chidlom Sukhumvit along Ladprao Road, Sukhumvit Rama 4 or by the provinces of the province.

These buildings are interpreted as land and other non-residential buildings and are subject to a tax of "0.3 Baht" of 0.3% up to 0.7%.

As a result, the sale of rice noodles is in the same place where gold has never paid a tax or less. These people will be affected to a large extent. And especially those who use land but with low returns like gas stations – Gas Car Care, the bazaar, the center, the apartment, the parking lot in the near future can not generate revenue, pay the land tax according to the new structure.

Open the corruption "vulnerability".

Among other things, despite claiming that the new law has introduced tax exemptions. The adjustment period is up to 3-4 years, but the violation of the order does not follow the local authorities' orders (law enforcement agencies). New country tax legislation. "Criminal punishment" will also make people victims.

Translated to simplify land ownership. No matter how much or how little life hanging on the yarn is always entitled to imprisonment. The new law gives local authorities the power to estimate taxable income as a local income. It also gives the local power to seize as well as the auction itself.

This is uncertain and "dangerous"!

What if the landlord has notified the landlord, tenant, carpenter or carpenter to pay the tax as assessed, but the landowner does not accept or perform the measure. Not only will it be charged with a penalty of 25-50%, but it will also be punished by a crime. The risk of this law.

Because the definition of "false representations for tax evasion" is widely used. The owner of the tax return does not match the official evaluation, it is eligible to attend at any time!

This is Mr. Atip Pansanon, CEO of the Housing Association. And Chairman of the Trade Association, Real Estate Group. Design and construction The Thai Chamber of Commerce says that the law has a significant impact.

Because the execution is complex in practice. Land use classification and taxation are steps that will "open the door" for corruption. Since it is not clearly defined, there must be an interpretation of the use of land and buildings.

Meanwhile, the introduction of taxes. "The value of assets" regardless of the company's actual revenue will lead to the business being in danger can not continue the business. Must be forced to sell after cultivation.

The three joint private sector committees The Chamber of Commerce of Thailand Thai Bankers Association and Federation of Thai Industries (FTI) will discuss the effects. And reflect on these continuing concerns for the government to review the content of the content at some point.


Whatever the background behind the push. Tax law "Land and buildings" will be to increase tax efficiency. Reduce social differences. Encourage the use of land. As the Finance Ministry proclaims or has a "hidden agenda" that encourages "landlord" capitalists to exploit and "cheap" land forced to sell from the new rates easier.

But today the Tax Code and this building. I've been out of it. We hope that the concerns raised above will not happen.

This is not the case with the government, NBC and NIA. This historical series will be recorded as "stigmatization" because it lies behind the robbery of this little country left by farmers and Thai people all the time!

Economic team

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