The cabinet approved extending the reduced ownership transfer and mortgage fees for another year, which is expected to increase GDP by an additional 0.5%, says Pornchai Thiraveja, director-general of the Fiscal Policy Office.
The cabinet passed a resolution to reduce the ownership transfer and mortgage fees, which were due to expire at the end of this year, for another year.
Applicable for both first and second-hand homes, the ownership transfer fees are reduced from the normal rate of 2% of the appraised value to 1% for a house valued at 3 million baht or less, while the mortgage registration fees are cut from 1% to 0.01% for loan amounts of 3 million baht or less per contract, according to the ministerial regulations on the Land Development Act and the Condominium Act.
Such measures, excluding refinance, are effective until the end of 2024.
While the fee reductions are estimated to shrink state tax revenue by around 5 billion baht next year, the stimulus effect is forecast to increase GDP by an additional 0.5% because the property sector has a supply chain related to many other sectors, including construction materials, electrical appliances and transport.
The measures are also expected to help relieve the financial burden for people who want to own a home, expanding effective housing demand and leading to improved economic stability, he said.
Properties covered by the measures include single houses, semi-detached houses, townhouses and commercial buildings and apartments (both first and second-hand properties) for units worth 3 million baht or less, or for a loan amount of 3 million baht or less per contract.
However, partial sales are not applicable.
The cabinet also approved extending the reduction and exemption of customs duties for battery electric vehicles (BEVs).
The import duty was reduced from 80% to at least 40%.
To qualify for these privileges, the imported items must be brought in between Jan 1, 2024 and Dec 31, 2025, with the price not exceeding 2 million baht.
In addition, the cabinet approved extending the period for a 14% excise tax for another two years for automobiles or passenger cars with less than 10 seats.
The measure is effective from Jan 1, 2024 to Dec 3, 2025.
"The cabinet resolution presented by the Finance Ministry stemmed from the resolution at the previous meeting on Dec 19, approving the four-year plan to support the EV3.5 scheme [2024-2027], which reflects the commitment to promoting the EV industry," Mr Pornchai said.