Thai govt calls for calm over tax on lands and buildings

BANGKOK, March 8 (TNA) – The Thai government has asserted that a new tax on lands and buildings will not put too much financial burden on people. Speaking to reporters on Sunday, Deputy government spokesman Major General Sansern Kaewkamnerd urged the people to stay calm on the matter, saying that it is still unclear for the time being on the exact amount of the new land and house tax to be collected by the government . He said tax on lands and buildings is necessary as the money will be spent for national development and it is also the duty of every Thai to pay tax. He said Prime Minister Prayut Chan-ocha has instructed the Finance Ministry that tax collection must not put burden on low-income earners while those with high income must pay higher tax and the majority of the people must not suffer from paying tax. Major General Sansern said the governemnt’s working group had still not yet fixed regulations on the planned collection of land and house tax. People should not, therefore, panic or worry too much. The proposal needs to receive approval from the cabinet and the National Legislative Assembly before it comes into effect, he said. It is expected that the Finance Ministry would submit the draft bill on land house tax to the cabinet for consideration within this month. Initially, the ministry has fixed the ceiling for tax on land used for agricultural purpose at 0.25 per cent, for residential at 0.5 per cent and for commercial at 2 per cent. Tax on land which is left unused will be collected at 0.5 per cent in the first year and the amount will be raised to double in every three years with the maximum collection of 2 per cent. The government will begin collecting land and building tax two years after the law is promulgated. (TNA)