Connect with us


Property tax break ill-timed – Phummisak



Property tax break ill-timed – Phummisak | Thaiger

PHUKET: Phummisak Hongsyok, President of the Phuket Real Estate Club (PREC), yesterday criticized the government’s move to reduce the tax on transfer of property ownership as ill-timed and inappropriate.

His criticism came despite the fact that many would assume that real estate companies and property developers would welcome the proposed tax break as a stimulant, however small, to house sales.

The proposal was aired on Wednesday by Deputy Finance Minister Chaiyot Sasomsub.

Currently, homebuyers must pay transfer taxes based on the purchase price of each and every property they buy.

The proposed tax break, K. Chaiyot explained, would mean that transfer taxes would be based on the difference between the price of the new home and the price of the old one.

For example, under the current system, a homebuyer upgrading from a 1-million-baht home to a 1.5-million-baht home pays tax on both amounts in full.

Under the new proposal, the buyer would pay tax on the original 1 million baht, and then on the difference between the house prices – 500,000 baht.

K. Phummisak, however, told the Gazette that he believes the timing of the tax break proposal is wrong.

“I don’t think this idea is appropriate right now. I don’t know what the central government is trying to do, but it is the wrong time.

“When the economy is like this, with the cost of fuel rising every day, we should encourage people to save more. If they have a house already, why encourage them to spend more buying a bigger house?” he asked.

In addition, he queried, “Who would buy a new house just because transfer fees have been reduced like this?”

K. Phummisak explained that in Phuket the market for low- to medium-cost houses, which he described as being priced between 1 million and 4 million baht, was suffering because most of the buyers are hotel staff, tour guides or other people who work in the tourism industry.

“But the high-end of the [Phuket property] market has no problems because most of the money is transfered from overseas and the buyers are still certain they want to buy. They are thinking long-term about having a holiday home in Phuket,” he added.


Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Thailand8 mins ago

10 Unique Superstitions of Thai People

Weather44 mins ago

Tropical storm ‘Mulan’ pours down on north and northeast Thailand

Patong2 hours ago

Fire breaks out at Patong bar

Sponsored2 days ago

BKFC THAILAND 3: Moment of truth set for September 3

Politics4 hours ago

Exiled Sri Lanka President warned to stay in his hotel in Bangkok

World4 hours ago

UPDATE: Salman Rushdie on ventilator, details on stabber emerge

Thailand5 hours ago

Campaign to get international training for Thai teen declared record sprinter

Join the conversation on the Thaiger Talk forums today!
Crime5 hours ago

Royal birthdays bring over 100,000 royal prison pardons

Video5 hours ago

The Voice Behind the World’s Top Brands ft. Krit Tone Sukawat | Thaiger Podcast Ep.2

Press Room6 hours ago

Thailand as your next destination for Motorcycle Adventure post-COVID

Crime6 hours ago

Singaporean and Thai swindler couple arrested in Malaysia

Crime17 hours ago

Author Salman Rushdie stabbed at New York lecture

Transport22 hours ago

Daily trains begin between Malaysian border and Bangkok

Coronavirus (Covid-19)23 hours ago

Virologist predicts most of Thailand will have had Covid by 2023

Transport23 hours ago

Bangkok gets 20 new electric buses next week

Crime1 day ago

Armed robber escapes with gold worth 800,000 baht in Thailand

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11