Cabinet ends tax incentives for property sector

BANGKOK, 23 February 2010 (NNT) – The Cabinet has decided against continuing tax incentives to the property development sector, effectively allowing it to conclude at the end of March.

Finance Minister, Korn Chatikavanij, revealed via a news conference today, that clearer signs of recovery in the property sector resulted in the Cabinet discontinuing tax breaks for the industry. Property rights transfers in 2009 increased by 7%, with business in the capital city of Bangkok and its perimeter rising by 10%.

Mr. Korn elaborated that the tax incentives will be readjusted after the conclusion of the measures after March. Property rights transfer fees will rise from 0.01% to 2%, mortgage registration fees from 0.01 to 1% and special business tax from 0.01% to 3.3%.