Ministries promise to soften taxes on land and buildings

Thailand's finance and interior ministries have said they are keen to review land and building tax to reduce its impact on citizens during a period of economic challenges. At the annual real estate seminar, they outlined the goal of improving the tax collection process and ensuring fair rates so as not to make things worse for the public in a difficult economic situation.

Special attention is given to measures to stimulate the real estate sector through easing credit conditions. It is proposed to relax regulations on loans and mortgages in order to support the real estate market and thereby promote economic growth. In addition, it is proposed that financial institutions facilitate access to credit by finding a balance between risk and stability.

The Ministry of Finance has introduced incentives for the real estate market, which include tax incentives such as income tax deduction of up to 100,000 baht for interest on loans for the purchase of residential properties and tax reduction on land and buildings for up to three years. Additionally, there is a tax exemption for common property and reduced fees for title transfer and mortgage registration.

In support of affordable housing, the "One Million House Project" has been launched with a budget of 20 billion baht, offering mortgages of up to 1.5 million baht for up to 40 years. In addition, the "Project Credit for Happy Life" is being implemented to facilitate the purchase of homes with loans from 2.5 million baht.

According to Yuthapum Charusreni of the Fiscal Department, the risk of a technical recession in Thailand is being reduced due to improving economic indicators. Economic growth is expected to be supported by an increase in foreign tourists. Despite global tensions such as conflicts in the Middle East and between Russia and Ukraine, their impact on Thailand's economy is expected to be limited.