Thailand Told to Support Land Tax
March 10, 2015 Taxation in Thailand
BANGKOK – Thailand will fund infrastructure and development through a VAT hike, unless locals support a proposed new tax on land and buildings.
In a speech delivered on March 9th the Prime Minister of Thailand Prayut Chan-o-cha said that the government may be able to delay, or even drop, the upcoming hike to the rate of VAT, if local taxpayers support the proposed land and building tax.
The government is currently proposing that any land or building valued at over THB 1.5 billion be charged an annual tax of 0.1 percent, with some concessions provided to farmers to shield them from the financial impact of taxes on agricultural land.
The revenues gathered from the tax re intended to provide funding for local development projects, and the local tax authorities which will be charged with collecting the tax will also be required to advertise what the tax will be used for in each region.
In his speech the Prime Minister indicated that if the public continues to oppose the land and building tax, the government will be forced to raise the rate of VAT later this year in order to raise the funds necessary to fund the country’s development while simultaneously reducing sovereign debt.
Photo By: Mark Roy