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Tax breaks may be extended
Bangkok Post – 19 November 2008
WICHIT CHANTANUSORNSIRI
The Finance Ministry will propose extending tax breaks for the property sector until March 2010 to bolster the economy.
Finance Minister Suchart Thada-Thamrongvech said cabinet ministers will consider the tax programme today.
The proposal will extend for one year a policy approved earlier this year cutting specific business taxes for the property sector to 0.1% from 3%. Land registration taxes were also reduced, to 0.01% from 2%, and the mortgage registration fee to 0.01% from 1% under the programme.
Mr Suchart said the extension would help homebuyers and property developers alike, as well as related industries such as building contractors, furniture manufacturers and interior designers.
Economic growth is now projected to fall below 4% in 2009, from around 5% this year, as a result of the slowing global economy.
The government has approved a supplemental 100-billion-baht spending programme to help spur growth and also plans to accelerate public and state enterprise investment plans to help offset decelerating export growth and sluggish domestic demand.
Mr Suchart said the Finance Ministry had also finalised a US$1 billion (about 35 billion baht) loan funded equally by the World Bank and Asian Development Bank (ADB) to help finance various economic stimulus measures, including new mass transit routes in Bangkok and a health centre.
Funds are expected to be disbursed in early 2009, he said.
The World Bank loans are over a 17-year term, while the ADB loans will be from 15 to 24 years.
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