PROPERTY TAX TO CABINET NEXT MONTH

       The Finance Ministry's Fiscal Policy Office will propose the property-tax law to the Cabinet again next month, after consideration was postponed this week.
       The office's director-general Somchai Sujjapongse, at a seminar organised yesterday by the Thai Real Estate Association, Thai Condominium Association and Business Housing Association, said the law would help boost the income of provincial offices and that they could use it to develop communities.
       Earlier, up to 80 per cent of community development funds came from the government, and only 20 per cent was covered by local administration revenue.
       Meanwhile, he said, the government could use the law to manage land across the country, especially in cases where landlords own large tracts but refuse to do anything with them. Once the law is put in effect, most landlords will be forced to use their plots for farming or setting up businesses, he added.
       Currently, at least 10 per cent of the population holds 100 rai each, while the remaining hold an average of 1 rai per person. Should the law go into effect, it would increase the tax burden on people holding large plots, so they will either be forced to reduce their property or use it to generate income, Somchai said.
       According to the office, the property tax proposed will be divided into three levels. Tax for agricultural land will be no more than 0.05 per cent, that for residences 0.1 per cent and that for commercial land 0.5 per cent. But tax for undeveloped land will be 0.5 per cent for the first year, 1 per cent in the second year and will then be increased by an additional 1 percentage point every year.
       Once the law is passed, the government will have to evaluate the 30 million individually owned plots across the country within two years.
       So far, the Finance Ministry's Treasury Department has only evaluated 6 million plots.