Thailand’s government has approved stimulus measures aimed at giving a boost to the Kingdom’s property and real estate sector.
A meeting of the Cabinet yesterday (Tuesday) approved what the Public Relations department of the Royal Thai Government hailed as “major real estate policies” that consist of housing loans and tax reductions for the public.
Minister of Finance Apisak Tantivorawong announced the Cabinet’s decision to approve his Ministry’s proposal for assistance measures.
The Cabinet has tasked the government-owned Government Housing Bank to be in charge of a THB 10 billion fund designed to provide housing loans to the public as far into the future as December 2016.
For the next six months, as widely predicted, real estate transference fees will be reduced from 2 percent to 0.01 percent, and mortgage fees will be reduced from 1 percent to 0.01 percent.
In addition, households will be able to use 20 percent of their real estate value for individual tax deductions for five years starting on December 31, 2016.
The Cabinet also agreed to permanently reduce individual tax rates to 20 percent, and also granted a 10-year tax exemption to the SME Venture Capital Fund.
Prior to the announcement yesterday Suphin Mechuchep, Managing Director of JLL, said: “Although the proposed measures are unlikely to help boost new demand in the residential market, it should help incentivise home buyers to accelerate a home transfer process.”