Connect with us

National

Should property ownership be restricted in Thailand?

The Bangkok Post : A proposal from the National Reform Committee to restrict property ownership to 50 rai a family has run into opposition from a deputy interior minister. The property reform is one of five recommendations the committee, chaired by former prime minister Anand Panyarachun, plans to put forward today as part of the government’s national reform plan to rid Thailand of social inequality.

East Asia Forum

Published

on

The Bangkok Post:

A proposal from the National Reform Committee to restrict property ownership to 50 rai a family has run into opposition from a deputy interior minister.

The property reform is one of five recommendations the committee, chaired by former prime minister Anand Panyarachun, plans to put forward today as part of the government’s national reform plan to rid Thailand of social inequality.

Mr Thaworn also said rich people who own lots of land that is left to sit idle should be taxed at a higher rate.

”[But] I disagree with a proposal to cap a family’s landholding at 50 rai,” Mr Thaworn said.

”There remains a lot of unused land that could be allocated to poor people for use to make a living.”

He said he supported a proposal calling for the disclosure of information on land ownership nationwide.

A member of the National Reform Committee, Permsak Makarapirom, said…wealthy businessmen had tried to get around the law by using villagers as nominees to hold land on their behalf and then used these farmers as workers on the land. He said justice could be achieved through the promotion of land ownership for poor people.

BP: Can understand the rationale behind such a proposal, but surely increased taxes is a better option and particularly a property tax which has recently stalled. The Bangkok Post last month:

The land and building tax bill will be postponed further to the next government, as the finance minister admits his target to start tax collection on land by June cannot be achieved.

The bill is designed to reduce social inequality among Thais as 10% of the population own more than 100 rai of land each while 90% own less than one rai.

Somchai Jitsuchon, research director of macroeconomic development and income distribution for the Thailand Development and Research Institute, said a land tax could increase state revenue by 100 billion baht a year, enough to provide social welfare for low-income earners for life.

For an explanation on how this would apply, see the Bangkok Post again:

For instance, the law will exempt property worth less than 1 million baht, a level that would essentially make the tax inapplicable for some 90% of all landholdings nationwide. …

In reality, the actual tax levels themselves are not particularly onerous, with commercial properties subject to a maximum rate of 0.5%, followed by residential properties at 0.1% and agricultural land at a paltry 0.05%. Undeveloped land would be subject to a tax rate of 0.5% and doubled every 3 years up to a maximum annual tax of 2% to encourage more efficient use and economic development of land.

So a homeowner with a house valued at 1 million baht would essentially be subject to an annual tax of just 1,000 baht based on the maximum rate, and more than likely would pay even less if the effective rate set by community authorities was lower.

BP: Why not impose this tax (and use the money to provide better education, health, and other policies) instead of trying to limit the quantity of land that can be owned by a simply family?

On why the property law has failed, in the words of a Bangkok Post reporter “the Democrat Party doesn’t want to expend political capital on a parliamentary fight…..[b]ut the Democrats undoubtedly know that it’s a risk to introduce any new tax and risk voter wrath so close to election time, no matter how worthy or narrowly crafted the impact” (see the last article quoted above).

btw, will this proposal apply to all families and what happens if an entity owns the land on behalf of the family?

Continued here:
Should property ownership be restricted in Thailand?

East Asia Forum provides a platform for the best in East Asian analysis, research and policy comment on the Asia Pacific region and world affairs.

National

Abuse against women still prevalent in Thailand

Like many other Asian countries, Thailand is a patriarchal society in which women are generally tied to the role of family caretaker which usually means raising children and taking care of the elderly, as well as other household chores like cooking and cleaning.

Avatar

Published

on

In December 1999, the United Nations designated Nov 25 as the International Day for the Elimination of Violence Against Women, to commemorate the murder of the Mirabal sisters, the three Dominican political activists who opposed the dictatorship of Rafael Trujillo in 1960.

Loading...
(more…)

Continue Reading

Banking

Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses

Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.

Olivier Languepin

Published

on

The Thai cabinet has approved assistance worth 350 billion baht($11 Billion) to help businesses affected by COVID-19 with soft loans and asset warehousing.

Loading...
(more…)

Continue Reading

Markets

Thai Mango growers complain of low prices and fewer exports

Because of the global COVID-19 pandemic, their mangoes are not being exported, due to fewer buyers, and their prices have plunged to between 10 and 20 baht per kilogram, depending on size.

Avatar

Published

on

Mango orchard owners in Thailand’s northern province of Phitsanuloke are seeking help from the provincial administration to promote the sale of their sweet fruit, particularly Barracuda Mango variety.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,973 other subscribers

Latest

Trending