Local governments are urged by finance permanent secretary Lavaron Sangsnit to demonstrate boldness in evaluating plots of land to determine their effective use, as this crucial assessment impacts the tax burden under the land and building tax system.
Mr. Lavaron highlighted that the land and building tax law, operational for five years, is currently under scrutiny for potential revisions. A primary issue under deliberation pertains to the enforcement and interpretation of whether certain land plots are utilized appropriately.
One contentious example involving lime tree cultivation in Silom district, renowned for its prime real estate, was cited. Mr. Lavaron expressed disagreement with the claims that Silom is suitable for lime cultivation, suggesting that such use does not align with the intended purpose.
He emphasized the need for courageous tax assessments, particularly in areas like Bangkok and Pattaya, which are more developed. The Finance Ministry has actively sought public feedback on the application of land and building taxes, with over 500 individuals having already provided their input.
Current tax rates are set as minimums by the government, allowing local administrations to adjust rates upwards for local development projects concerning utilities and infrastructure. Furthermore, the ministry is exploring criteria for green spaces to qualify for tax exemptions, such as converting land into public gardens or forest parks accessible to the public.
In the upcoming fiscal year, the anticipated revenue from land and building taxes is projected to reach 40 billion baht, reflecting a significant increase over the previous year. This rise in revenue may obviate the necessity to raise average tax rates.
