Call to loosen loan-to-value regulations
An aerial view of buildings in Bangkok. Mr Paopoom says the proposed improvements to the land and building tax aim to enhance both efficiency of collection and levy an appropriate rate. (Bangkok Post file photo)
The Finance Ministry and Interior Ministry have pledged to improve the land and building tax to prevent a negative impact on the public amid several economic challenges.
Speaking at the annual property seminar held on Wednesday by the three major real estate associations in Thailand, Paopoom Rojanasakul, secretary to the finance minister, said the proposed improvements to the land and building tax aim to enhance both efficiency of collection and levy an appropriate rate.
“The tax rates should not intensify hardships for people when economic conditions remain fragile,” said Mr Paopoom.
He called on the Bank of Thailand to ease loan-to-value (LTV) regulations to stimulate the real estate sector, which would help to propel the economy.
“The central bank should not view the relaxation of stringent LTV measures as encouraging the public to take on more loans. On the contrary, this should be seen in a positive light, as it could potentially stimulate the economy,” said Mr Paopoom.
In addition, he urged financial institutions to relax their credit conditions, allowing people greater access to credit. Financial institutions need to embrace increased risk, finding a balance between risk and stability, said Mr Paopoom.
He said the Finance Ministry acknowledges the importance of the real estate market, implementing stimulus measures for the sector this year including both tax and financial policies.