The Home Builder Association (HBA) has joined forces with 6 real estate organizations to present proposals to the Prime Minister and the Minister of Finance, aiming to alleviate the burden on those seeking housing and to unlock business restrictions to drive market recovery. HBA has proposed a personal income tax exemption measure for individuals looking to build homes on their own land, offering a deduction of 10,000 baht per million, up to a maximum of 100,000 baht, to restore economic confidence and purchasing power.

Mr. Olar Chanphu, President of the Home Builder Association (HBA), revealed that the association has collaborated with 6 other real estate organizations, including the Real Estate Trade Association, Design and Construction Committee, the Thai Chamber of Commerce, the Housing Developers Association, the Thai Condominium Association, the Thai Real Estate Association, the Real Estate Sales and Marketing Association, and the Thai Real Estate Brokers Association, to prepare proposals aimed at stimulating the economy through real estate measures to be submitted to the Prime Minister and the Minister of Finance.

The association has prepared a proposal for personal income tax deductions for those wishing to build homes on their own land, based on the construction value according to the construction contract stamped with a revenue stamp (Form A.S.4) from the Revenue Department, which can be used as evidence for personal income tax deductions in the following tax year at a rate of 10,000 baht per million, up to a maximum of 100,000 baht. This will help reduce the burden on those looking to build homes on their own land and stimulate the economy across all sectors connected to the home building business.

This measure also serves as an incentive for home building companies operating nationwide that have not yet registered as legal entities to do so and to enter the tax system more, which will benefit the overall economic system of the country.

Mr. Olar stated that the home building market situation in 2023 is filled with challenges due to business restrictions stemming from the COVID-19 pandemic, which has impacted the economy and consumers' financial capabilities, along with rising living costs from product prices and interest rates, leading to delays in home building decisions indefinitely. The association and home building companies have continuously adapted to cope with the still-recovering economic situation and remain confident that the proposed tax deductions will help accelerate decision-making for consumers looking to build their own homes, which will positively impact the overall real estate market growth in the country.