Thailand's new land tax expected to be introduced by 2017

BANGKOK, March 16 (TNA) - The Thai government, through the Ministry of Finance, goes ahead with a new land tax, expected to be introduced by 2017. Thai Finance Minister Sommai Phasee told journalists of the update on Monday, saying that his ministry is about to propose a new land tax bill to a tax reform committee and will let academics examine it thoroughly. Sommai assessed that the draft bill should be completed late this week, while the tax reform committee should spend two weeks on looking into the draft and his ministry would present the whole details of the bill to academics for their discussions before the promulgation of the land tax bill, expected by 2017. According to the finance minister, the planned land tax bill sets four tax rates for local residences, farmlands, commercial and industrial plots of land, and unused land plots, aimed to reduce people's inequality, promote land use and sustain the country's fiscal status. The finance minister foresaw that the new land tax, once introduced, should generate at least 200 billion baht of national revenues with all the money to go to local administrative organizations. At present, the minister revealed, the Thai government collects only 20 billion baht annually from the existing land tax. The finance minister explained when the Thai government generates more revenues, the administration can borrow more to further develop local educational and health services for public interest. The finance minister acknowledged that the new land tax has been carefully studied for over a year. (TNA)