Hotel operators have argued that seeking annual discounts on the land and building tax does little to ease the sector’s long-term fixed-cost burden, urging the government instead to overhaul the tax structure and link it to revenue, similar to the former property tax system.
Land appraisal prices are revised every four years, with the next reassessment scheduled to take effect in 2027. According to the Treasury Department, land values are expected to rise by less than 10% in the upcoming round.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said the association plans to raise the issue with the finance minister once a new government is in place.
The land and building tax has been in force since 2019, although full-rate collection only began in 2024 after several years of temporary reductions introduced to support businesses during the pandemic.
Over the past two years, hotels and other businesses have faced rising costs as tax liabilities are calculated based on land appraisal values rather than actual revenue, Mr Thienprasit said.
He noted that the private sector typically submits proposals to the finance minister each year requesting tax relief, but the THA believes this approach fails to address the underlying structural issues.
Calls for a revision are justified, he added, citing the 2015 royal decree on regulatory reviews, which mandates that laws be assessed every five years to ensure they remain appropriate and do not impose excessive burdens on the public. The most recent review in 2024 resulted in only minor adjustments.
Mr Thienprasit said the land and building tax has disproportionately affected small businesses and low-income earners, particularly those located in prime areas.
“Small shops and hotels are struggling with weak purchasing power, yet they are required to pay tax based on fixed appraisal values rather than income, as was the case under the previous property tax,” he said.
Apartments offering monthly rents of 5,000–6,000 baht—an affordable range for low-income tenants unable to purchase homes—have also been affected by the tax regime.
If operating costs continue to rise, the burden will ultimately be passed on to consumers, Mr Thienprasit warned.
He also questioned the appropriateness of using Treasury Department appraisal prices as the basis for taxation, noting that such valuations were originally intended for collateral assessment and property transfer calculations, not for determining tax liabilities.
“In today’s economic environment, where business recovery remains uneven, hotels prefer a revenue-based tax system that allows them to adjust more effectively to economic fluctuations,” he said.