Thailand’s revamped tax system promises economic boost

In a bid to shield the public from economic turmoil, Thailand’s Finance and Interior Ministries have unleashed a slew of reforms, spearheaded by Paopoom Rojanasakul, secretary to the finance minister.

Addressing a high-profile property seminar, Paopoom asserted that the proposed alterations to the land and building tax are geared towards bolstering collection efficiency and ensuring a fair tax rate.

“We cannot burden the people further amidst fragile economic conditions.”

Paopoom urged the Bank of Thailand to relax loan-to-value (LTV) regulations, stressing the potential to invigorate the real estate sector and fuel economic growth.

“This isn’t about encouraging debt; it’s about jumpstarting the economy.”

Moreover, he called upon financial institutions to loosen credit conditions, striking a balance between risk and stability. The Finance Ministry, he assured, recognises the pivotal role of the real estate market and has devised stimulus packages, encompassing tax and financial policies.

Among the measures, tax deductions on personal income for property-related loans and a substantial reduction in land and building tax for developers aim to alleviate financial burdens. The government has also extended tax collection periods and slashed transfer and mortgage fees to revitalise the housing market.

Additionally, initiatives like the One Million Homes Project and the Happy Life Credit Project aim to make homeownership more accessible, with flexible loans and competitive interest rates, reported Bangkok Post.

In a glimmer of hope for Thailand’s economy, Youthapoom Charusreni, director of the Fiscal Policy Office, indicated a diminished risk of recession. Despite global tensions, including the Russia-Ukraine conflict and concerns over China’s economic slowdown, prospects remain positive, he affirmed.

In related news, Prime Minister Srettha Thavisin of Thailand is set to travel to Germany and France in an official capacity. The visit, scheduled for March 7 to March 14, aims to bolster trade and investment between Thailand and these European nations.

Accelerating the completion of a Free Trade Agreement (FTA) and advocating for visa exemptions for Thai passport holders are top priorities.