Government mulls over a potential 50% reduction in land tax, scrapping the 99-year leasehold plan indefinitely.
Thai Government Considers Tax Cuts and Short-Term Measures to Boost Property Market and Stock Market
The new Thai government is reviewing proposals from the property and construction sectors to stimulate the market amid ongoing economic slowdown. The review comes as feedback from both the business community and members of parliament has emphasised the prolonged slowdown in the property sector.
Deputy Leader of the Palang Pracharath party, Siripong Angkhasakulkiat, is at the forefront of these discussions. He is joined by Siripong Angkhasakulkiat, deputy leader of the Bhumjaithai Party, in these important discussions.
One of the key proposals on the table is a 50% reduction in land and building taxes for 2026. This tax cut is proposed to be applied for one year or until the stock market recovers. The government is also considering accelerating the disbursement of pending construction payments and improving control over low-quality imported building materials.
Short-term measures are proposed for the final four months of 2025 to stimulate the property market and stock market. These include lowering transfer and mortgage fees and extending the "Baan Dee Mee Down" housing project. The Thai Credit Guarantee Corporation (TCG) may also expand its role to guarantee residential property loans for individuals.
In addition to these measures, the government is looking at measures that can be implemented immediately and have a rapid impact on the economy. Corporate income tax reduction is suggested to encourage domestic demand while monitoring foreign nominee participation in property and construction. The 99-year leasehold scheme, which has sparked debate among MPs and society, will not be pursued by the government.
Siripong Angkhasakulkiat confirmed that the government will not push legislation still under study, as there is insufficient time. Discussions are underway with various business sectors before the government officially takes office. The government is considering these proposals alongside other short-term initiatives intended to boost purchasing power and support economic recovery.
The property sector is linked to many other industries, making targeted measures essential. By stimulating the property market and stock market, the government hopes to create a ripple effect that will benefit the wider economy. The measures proposed are a step towards achieving this goal.
As the government continues its review of the proposals, it remains committed to finding solutions that will help the property market and stock market recover and contribute to the overall economic growth of Thailand.
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