BANGKOK, Thailand – The Ministry of Finance is working to address economic inequality by advancing property tax reforms and launching the “Housing for Thais” project, with significant progress expected by 2025.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira on December 13 announced during the “Deep Dive Thailand” program on Channel 9 MCOT that reforms under consideration include:
1.Reducing corporate income tax from 20% to 15%,
2.Lowering the maximum personal income tax rate from 35% to 15%, and
3.Increasing VAT from the current 7% to between 10%-15%.
However, Pichai reassured that VAT would not be raised to 15% at this stage to avoid widespread economic impacts. Instead, the government is focusing on efficient property tax collection to bridge the gap between the rich and the poor.
Thailand’s wealth is divided into three main categories:
1.High-income earners with business or professional income,
2.Individuals accumulating wealth through land, real estate, or investments, and
3.Inherited assets. Pichai noted that policies on taxing high-value properties and inheritance are still under review, with further studies required to refine the system and promote fairness.
The additional tax revenue will fund large-scale infrastructure projects, including road construction, the development of the Eastern Economic Corridor (EEC), and enhancements to the national logistics network to boost Thailand’s competitiveness.
The government also plans to introduce the “Housing for Thais” initiative, which will transform state-owned land, such as inner-city railway properties, into affordable housing. Targeted at young professionals and low-income individuals, the project aims to offer rent-to-own homes with monthly payments of 4,000 baht and long-term leases of up to 99 years. This initiative will help reduce transportation costs and improve urban accessibility, with concrete steps expected by 2025.
This approach aligns with the government’s commitment to creating sustainable economic opportunities and addressing inequality through structural reforms. (TNA)
