First-home scheme to be adjusted for Cabinet’s review next week

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BANGKOK, 27 September 2011  – The Ministry of Finance is ready to modify the first-home tax cut policy before resubmitting it to the Cabinet next week while planning to add a three-year interest-free loan for properties worth 2 million THB and below. 

According to Deputy Finance Minister Wirun Techapaiboon, the Cabinet has assigned the Finance Ministry to reconsider the policy to reduce tax for first-time home buyers in order to propose it again during the next meeting for approval. Initially, the Ministry plans to draw up different tax incentive packages along with a loan plan offering a zero percent interest for the first three years for people buying houses valued at no more than 2 million THB.

Previously, the Cabinet already approved a condition to provide buyers of homes worth no more than 5 million THB with a 10 percent tax refund for five years. The tax return policy is effective from now until 31 December next year.

As the Government Housing Bank will initially be responsible for the tax refund process, the Government is set to reimburse the bank three quarters of the total expense incurred by the policy, or approximately 300 million THB per year.