Thailand’s Treasury Department is looking to increase the median price of land it uses to evaluate local maintenance taxes.
Current rates are based on median priced from appraisals between 1978 and 1981, but current prices have increased significantly. Current rates of local maintenance tax are relatively low at 0.5 percent of the median price for land priced below THB30,000 baht per rai, and 0.25 percent for that priced more than THB30,000 baht per rai. Landlords who own less than five rai are exempt.
Officials noted that local government collects little tax income because 90 percent of Thais own less than one rai of land each.
Speaking to the Bangkok Post Wason Khongchantr, Managing Director of property consultant Modern Property, urged the Treasury Department to accelerate land price appraisal by plot as it could create benefits beyond updating the median price, which can only boost local administrations’ income.
He said appraising land value by plot, which is more accurate and can better reflect the actual market value than doing it by zone, can be used to set a land value index in each province, which would be applicable for the next appraisal.
It was widely reported that a plot in Nana was recently purchased for THB1.8 million baht per sq wah, but the appraised value was below THB1 million.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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