Thai Real Estate Sector Proposes Windfall Tax on Land Near Major Infrastructure Projects
BANGKOK — Thailand’s real estate industry is urging the government to accelerate infrastructure investment and implement a windfall tax on land that benefits from proximity to mega-projects, as a means to stimulate the economy and boost state revenue.
Sunthorn Staporn, President of the Housing Business Association, said Monday that the government should reconsider its economic stimulus strategies, shifting focus from short-term cash handouts toward long-term investments and structural reforms.
Sunthorn emphasized that while direct handouts have limited economic impact, investing in large-scale infrastructure projects — such as double-track railways and the high-speed train line from Bangkok to Nakhon Ratchasima — could spur regional growth and benefit broader sectors of the economy.
He proposed the introduction of a windfall tax on land that significantly increases in value due to state-funded projects, including electric train lines, expressways, and airports. This tax would target landowners profiting from government-driven development, providing an additional revenue stream beyond current mechanisms like VAT.
He also urged the government to swiftly enact the long-delayed Property Rights Act, which would extend land lease periods from 30 to 60 years, aiming to resolve issues related to nominee ownership and improve investment confidence in the real estate sector.
Sunthorn’s recommendations come amid growing calls for structural economic reforms and more equitable development policies as Thailand navigates post-pandemic recovery and rising foreign competition.
