BANGKOK — The real estate sector on Monday advised the government to expedite mega-project investments to stimulate the economy and collect ‘windfall tax’ to increase revenue.
Sunthorn Staporn, President of the Housing Business Association, stated that he would like the government to revise its economic stimulus plan to align with the current situation and to consider long-term economic restructuring.
He suggested shifting the allocation of funds from cash handouts, which have a limited impact on the economic system, to other projects. For instance, in the short term, the government could implement a co-payment scheme and introduce measures to assist SMEs affected by cheap foreign goods, such as providing soft loans and accelerating investments in large infrastructure projects that are still under construction, such as double-track railways and the Bangkok-Nakhon Ratchasima high-speed train, to promote economic expansion into other provinces.
Sunthorn further stated that, in addition to the government’s plan to restructure tax collection to increase revenue, he proposed that the government consider collecting windfall taxes.
This involves levying taxes on land located along the routes of government-invested infrastructure projects, such as electric trains, double-track railways, expressways, and airports, which have increased the value of the land in those areas.
This would serve as an additional source of revenue alongside value-added tax and other taxes. He also urged the government to expedite the enactment of the Property Rights Act and extend the lease period from 30 years to a maximum of 60 years to address the nominee issue in the real estate business.
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