Housing developers ask govt for transfer fee reduction

BANGKOK, 22 January 2011 (NNT) – Property developers are encouraging that the government should reduce property transfer and registration fees again, noting that the assistance can be given next year onwards because they are confident that the business this year will thrive similarly to last year.

Housing Business Association President Issara Boonyoung requested that the government should conduct a feasibility study to see if it can reduce transfer and registration fees, specific business tax in the long-term as well as adjust the collection of housing tax in a progressive manner.

Mr Issara however noted that there was no need to implement all the proposed measures within this year right away because it was projected that this year’s growth in the property sector would be similar to that in 2010.

There were 100,000 registrations of new houses last year. 50% of them were condominiums while town houses and detached houses accounted for 30% and 20% respectively. Transfer of both new and second-hand property stood at 170,000 units.

Speaking regarding the request of housing developers, Deputy Finance Minister Pradit Phataraprasit stated that the proposed measures must be studied thoroughly to ensure fairness to all sides because it would affect the tax structure in general.

However, Mr Pradit said the study on the tax structure had been completed already and would be ready to be submitted to Finance Minister Korn Chatikavanij within three to six months for consideration prior to submission to the cabinet.