The Thai government has approved the extension of the reduction in property transfer and mortgage fees for another year, which is expected to increase GDP by 0.5%, says Pornchai Thiraveja, director general of the Office of Fiscal Policy ( Fiscal Policy Office).
The government passed the resolution to reduce property transfer and mortgage fees, which were due to expire at the end of this year, for another year.
Applicable to first- and second-hand homes, the property transfer fee is reduced from the standard rate of 2% of the assessed value to 1% for a home valued at 3 million baht or less, while the registration fee mortgages are reduced from 1% to 0.01% for loan amounts of 3 million baht or less per contract, in accordance with ministerial regulations relating to the Land Planning Law and the Condominium Law.
These measures, which do not concern refinancing, are applicable until the end of 2024.
While the tax cuts are expected to reduce state tax revenue by around 5 billion baht next year, the stimulus effect is expected to increase GDP by another 0.5% as the real estate sector has a chain supply chain linked to many other sectors, including construction materials, electrical appliances and transportation.
The measures are also expected to help ease the financial burden on people seeking home ownership, increase effective demand for housing and improve economic stability.
The real estate affected by these measures are single-family houses, semi-detached houses, commercial buildings and apartments (whether first or second-hand properties) for units with a value less than or equal to 3 million baht, or for a loan amount of less than or equal to 3 million baht per contract.
However, partial sales are not applicable.
The government also approved the extension of customs duty reduction and exemption for battery electric vehicles (BEV). Import duties have been reduced from 80% to at least 40%.
To benefit from these privileges, imported items must be introduced between January 1, 2024 and December 31, 2025, and their price must not exceed 2 million baht.
In addition, the government approved the extension of the period of application of a 14% excise tax for two more years for automobiles or passenger cars with less than 10 seats.
The measure is effective from January 1, 2024 to December 3, 2025.
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2023-12-28 17:13:18
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