The Ministry of Finance has said it is exploring additional fiscal measures to sustain economic growth following the introduction of the digital wallet stimulus project.
According to Permanent Secretary for Finance Lavaron Sangsnit, the ministry is currently benefiting from the positive public response to its recent property stimulus measures, including the “Happy Home Loan” scheme by the Government Housing Bank. The scheme, offering low-interest loans for residential purchases or construction on self-owned land, has attracted a significant number of applicants, ensuring continued activity in the property market. These loans are capped at 3 million baht per borrower with a fixed interest rate of 3% for five years and can extend up to a 40-year repayment period.
On April 9, the cabinet approved a series of incentives to boost homeownership and stimulate the real estate sector. These incentives include drastic reductions in the transfer fee and mortgage registration fee to just 0.01% of the transaction value for properties not exceeding 7 million baht, aimed exclusively at Thai nationals and set to expire by the end of 2024. Personal income tax deductions are also available for taxpayers undertaking house construction, offering a deduction of 10,000 baht per million baht spent, up to 100,000 baht, valid through the end of 2025.
The Fiscal Policy Office projects these measures to elevate the GDP by 1.7-1.8 percentage points, with expected property transactions reaching 800 billion baht and new investments between 400 and 500 billion baht. (NNT)
