What To Know
- Among the measures being reviewed are expanded loan guarantees from the Thai Credit Guarantee Corporation, extended tax incentives for domestic demand, and stricter monitoring of foreign nominee activity in the sector.
- Though the 99-year leasehold plan is off the table, the focus on targeted tax incentives and regulatory improvements reflects a pragmatic approach designed to boost growth while avoiding divisive debates.
Bangkok Business News: Economic Challenges Prompt Urgent Policy Review
Thailand’s new government is actively engaging with the property and construction sectors as it considers bold measures to revive the slowing economy. A central proposal under review is a 50 percent reduction in land and building taxes for 2026. This Bangkok Business News report highlights that the reduction would be temporary, lasting a year or until the broader economy shows clear signs of recovery. The move is seen as crucial since the property sector directly fuels multiple industries, amplifying its impact on growth.
Government pledges tax relief to boost Thailand’s struggling property sector
Image Credit: AI-Generated
99 Year Leasehold Proposal Shelved
Alongside tax relief, the government has clarified its stance on the controversial 99 year leasehold scheme. Initially floated as a way to attract long term investments, the plan faced criticism from parliament members and the public. Siripong Angkhasakulkiat, deputy leader of the Bhumjaithai Party, confirmed that the new administration will not pursue the scheme further, citing limited time, lack of consensus, and ongoing debates about its social and economic implications.
Broader Property Sector Support
Industry groups have tabled additional suggestions aimed at lifting both housing and construction markets. Among the measures being reviewed are expanded loan guarantees from the Thai Credit Guarantee Corporation, extended tax incentives for domestic demand, and stricter monitoring of foreign nominee activity in the sector. Developers also urged the government to fast-track overdue construction payments and strengthen regulations to reduce the influx of low quality imported building materials.
Short Term Stimulus On The Table
In addition to long term structural reforms, the government is weighing short term “quick win” measures. These include slashing transfer and mortgage fees to 0.01 percent for properties valued above seven million baht and extending popular programs like the “Baan Dee Mee Down” housing initiative. Authorities are also exploring ways to reduce corporate income taxes to give businesses additional room to invest and hire.
Future Outlook for The Market
Market observers note that while a tax cut would provide temporary relief, the government must ensure these policies align with sustainable recovery. By balancing immediate economic stimulus with longer term strategies, the administration seeks to rebuild confidence in both domestic and foreign property investment. Though the 99-year leasehold plan is off the table, the focus on targeted tax incentives and regulatory improvements reflects a pragmatic approach designed to boost growth while avoiding divisive debates. If executed effectively, these measures could help stabilize Thailand’s property sector and strengthen the foundations for broader economic recovery in the coming year.
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