No extension for property tax incentive, ends Thursday
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No extension for property tax incentive, ends Thursday

Panelists on stage discuss the outlook for the property market after the tax incentive stimulus ends on April 28, at a seminar on Wednesday. (Photo by Prasert Khwanma)
Panelists on stage discuss the outlook for the property market after the tax incentive stimulus ends on April 28, at a seminar on Wednesday. (Photo by Prasert Khwanma)

Homebuyers hoping to benefit from the government's tax incentive must complete the title transfer by Thursday, because it will not be extended beyond April 28, deputy finance minister Wisudhi Srisuphan said.

"The six-month period is suitable," he said on Wednesday  when confirming the property tax benefit would end as planned.

"An incentive is like a strong dose of medicine. It should not be used for too long or too often. Otherwise, it will not work."

The tax incentive launched on Oct 29, 2015  comprise a deduction in transfer and mortgage loan fees from 2% and 1% respectively to 0.01%.

Mr Wisudhi said the property tax incentive would have helped may homebuyers who were hesitating about buying in current economic conditions come to a quicker decision.

According to the Real Estate Information Centre, the number of new housing unit title transfers in Greater Bangkok rose 21% during the period November-December 2015, the first two months after the property sector incentive was launched, compared with the same months in 2014.

"I don't think it will be a crash landing for the property sector after the incentive ends," he said at a seminar on the property market.

"It will be a soft landing, like in the past when previous governments introduced measures to stimulate the property sector. The market slowed for a month or two after the incentive ended, but  resumed as usual after that."

He said the property tax incentives stimulated the middle-to-high-priced housing sector. The government also has a Baan Pracha Rath low-cost housing scheme to stimulate the low-end segment.

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