THE POLICY ON LAND AND BUILDING TAXATION WITHIN BANGKOK METROPOLITAN AREAS FROM 2019 TO 2024

Abstract

In this dissertation, the researcher examines (1) the policy on the land and building taxation within Bangkok Metropolis from 2019 to 2024; investigates (2) the problems and obstacles of the policy implementation; and studies (3) the guidelines for improving and solving the problems of the policy using the conceptual frameworks of the public policy implementation, public finance, and fiscal decentralization as well as property taxation. The technique of qualitative research was employed.
Findings are as follows. (1) This progressive tax rate policy is the transition from the house and land tax policy to the land and building tax under the Land and Building Tax Act B.E. 2562 (2019), adopting a value-based taxation approach and differentiating tax rates based on property usage. The purposes of the policy are to increase local revenue, enhance transparency and fairness, promote fiscal decentralization, increase efficiency in land utilization, and discourage unnecessary property holdings. This policy is a measure to stimulate land utilization. Waste land taxation at a high rate also encourages land utilization. (2) The initial phase of the policy implementation faced major problems and obstacles consisting of delays in the law enforcement, inadequate personnel preparedness and incomplete property data, tax avoidance exploiting legal loopholes, and the determination of tax rates not in consonance with the area’s potential. Loopholes in taxation remain in the aspect of excluding the cumulative value of all properties in stepwise tax calculations. The policy enforcement during the COVID-19 pandemic further reduced tax revenue. The government solved the problems by using the tax reduction measures to alleviate the public burden. (3) The guidelines to solve the problems are that the Bangkok Metropolitan Administration (BMA) can increase tax collection efficiency as aimed through an improvement of
the database systems and internal management i.e. using information technology to support tax collection; offering awards to foster motivation; and determining appropriate tax rates to align with land use characteristics.
Recommendations from the research findings are as follows. Increase tax rates in high-potential business areas. Reduce the minimum taxable property value to expand the taxpayer base. Introduce the principle of tax deduction for donors to the BMA to foster cooperation and support long-term tax collection. The land and building tax policy of the BMA is a major step in the property tax reform in Thailand. Despite initial challenges and limitations, structural and management improvements can contribute to fostering long-term economic fairness.