Cabinet OKs bill on taxation of property near infrastructure projects

Advisor to the Prime Minister’s Office, Natporn Jatusripitak.
Advisor to the Prime Minister’s Office, Natporn Jatusripitak.

Bangkok – Following this week’s Cabinet meeting, Advisor to the Prime Minister’s Office, Natporn Jatusripitak, revealed that the Cabinet has approved, in principle, a bill governing the collection of tax on land or condominium units, where appraisal prices are pushed up due to their proximity to transport infrastructure projects. The bill was proposed by the Ministry of Finance, with an aim to create fairness in the tax system.

Individuals and juristic persons to be subject to the additional tax are those who possess land or condominium units with a commercial value of more than 50 million baht. The property is considered taxable if located within a five-kilometer radius of transport infrastructure projects, which include high-speed railway, double-track railway, electric railway, highways, airports and seaports.

The tax will be collected only once by the Department of Lands or the Local Administrative Organization at a maximum rate of 5 percent and will be contributed to the state’s coffers for national development. However, this tax bill targets only property used for commercial purposes and will not apply to residences or farmland.