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Economics Professor at Chulalongkorn Uni says proposed land tax will help in spreading wealth

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Economics Professor at Chulalongkorn University says proposed land tax will help in spreading wealth

BANGKOK, 7 June 2016 (NNT) - Dr Somprawin Manprasert of the Faculty of Economics at Chulalongkorn University said the bill on land and building taxation proposed in the Cabinet meeting will aid in wealth distribution.


Dr Somprawin said the bill will serve as a positive beginning in tax reform. Existing legislation had allowed the wealthy to consolidate property, creating economic inequality. The proposed law seeks to deter people from hoarding real estate by imposing a tax on individuals with land valued at over 50 million baht. The individuals will then be compelled to liquidate their properties into other forms of assets.

Dr Somprawin argued that the shift from land to other assets will not be considered a form of tax evasion, but will further the goal of spreading wealth. The Chulalongkorn economist suggested that the government thoroughly enforce the new tax code in order to reap the greatest benefit from its implementation.

According to the bill, individuals who own land valued over 50 million baht or possess a second home will need to pay tax not exceeding 0.5% of the property's value. Agricultural lands will be taxed at a rate not exceeding 0.2%, while commercial buildings and industrial plants will be taxed at a rate not exceeding 2%. Owners of undeveloped property will need to pay tax not exceeding 5%.

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-- NNT 2016-06-07 footer_n.gif

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It wont help the poor , we all know where it will go and redistribution is not an option.

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"... by imposing a tax on individuals with land valued at over 50 million baht."

However there is no stipulation about taxing land owned by corporations. These people didn't acquire land valued at over 50 million baht by being stupid. They are well aware of how people in the west get around these taxes through dummy corporations and creative accounting. All this is going to do is force them to move their money around, but still in their control.

Edited by jaltsc

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If that were true, why has it not happened before? Why are people still poor? Why are the poor getting poorer and the rich getting richer? And, no more of that "but, but, but, TAKSIN" s h i t.

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The keyword here is "Hoarding". The result is unproductive economic resources.

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If that were true, why has it not happened before? Why are people still poor? Why are the poor getting poorer and the rich getting richer? And, no more of that "but, but, but, TAKSIN" s h i t.

Main cause - living beyond one's means and getting into debt.

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"BANGKOK, 7 June 2016 (NNT) - Dr Somprawin Manprasert of the Faculty of Economics at Chulalongkorn University said the bill on land and building taxation proposed in the Cabinet meeting will aid in wealth distribution."

Will help. At some unpecified time in the future.

So long as it's not now.

There people are geniuses at prediction. Not too good at auditing though. Or history. Or anything based on fact and not crystal-gazing.

W

Edited by Winniedapu

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Oh very sad. An easily avoidable tax. Even though we have land I was hoping for a broad based land tax to help fix the chemotherapy look of Bangkok and derive some revenue for the government. Now there will be no incentive to develop all those empty bogs of land which act as land fills and garbage dumps throughout the city. Shame and pity. Nothing changes. Tough decisions are kicked down the road.

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I'm calling BS on sharing the wealth, at least not with those who need help the most.

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A step in the right direction.
Parallel it
would be also important, to fight the money laundering.
You can buy here an apartment block for 200 million baht.
Need only to bring the money in two suitcases to the land registry office.
No one ask here stupid questions, like where the money comes from.

If an independent tax-office would add up the previous income f
rom all higher-ranking officials (and many positions are poorly paid), and then would make an assets owned estimate, many could not explain where all the money comes from.

For example:

A senior police officer gets officially 50,000 Baht per month.
Let say, he has worked as a policeman for 20 years.
So his added up income would be 12 Million Baht, without even having used one baht.
How can then, the same person (without having bank debts) buy an apartment house, resort, hotel, or what ever
and pay cash in 3-digit millions?

Here a functioning state would set the lever.
Alone the tax payments, tax penaltys and the the collection of ill-gotten money, could generate billions for the state in a very short time.

Edited by tomacht8
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No doubt the proposed land tax bill could be more extensive, closing loopholes already, etc., etc.

On the other hand there is no land tax bill now. The Surayut government in 2007 was working on one but dropped it as some strongly suggested that such should be left to elected governments. That's NINE years ago.

Make the first step and start working on the next.

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BANGKOK 22 November 2017 00:34
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