On December 13, 2019, Mr. Lavorn Sangsanit, Director of the Fiscal Policy Office (FPO) and spokesperson for the Ministry of Finance, announced that the collection of land and building taxes has not been postponed. This tax is collected annually, but to ensure maximum readiness, the Ministry of Interior has exercised its legal authority to extend the deadline by four months. Instead of the original tax payment due in April 2020, it will now be due in August 2020. This extension is aimed at allowing local tax collection agencies, of which there are over 7,000, to better prepare, as some are ready while others are not yet able to proceed, ensuring convenience for taxpayers nationwide.

           “The Ministry of Interior has been in continuous discussions with the Finance Ministry. The four-month extension means that what will happen starting January 2020 now has until May for preparation. The tax payment has been moved to August 2020, but it will still need to be paid eventually. This is just a delay of four months, giving all processes more breathing room. Among the more than 7,000 local authorities, some are ready while others are not, with most being smaller localities,” Mr. Lavorn stated.

           The Ministry of Finance confirmed that the enforcement of the land tax law has not been postponed; everything will still take effect on January 1, 2020, as originally planned. However, the tax collection process will begin on May 1, allowing for assessments and tax payments to occur in August. This means that during the period from May until the tax payment, local authorities will be prepared, including assessing and surveying land. Local authorities need to know how many plots of land are within their jurisdiction, their values, and the types of buildings, and they must conduct assessments to calculate before sending out tax collection notices to property owners.

           Additionally, in the process of implementing the land tax law, 19 subsidiary laws need to be enacted. Of these, 8 are from the Ministry of Finance, 7 of which have been completed. The remaining one, concerning the determination of tax rates to be collected, will be issued within two years of the tax collection, or by 2022. The other 11 are from the Ministry of Interior, with 6 completed, 2 of which have been finalized, and 4 recently approved by the Cabinet. The remaining 5 are joint laws between the Finance and Interior Ministries that require joint signatures. Four of these have already been signed by the Finance Minister and are awaiting the Interior Minister's signature, while one concerning agricultural areas requires a public consultation process by the Ministry of Agriculture and Cooperatives, which is expected to be completed by the end of this year.

           “In the meantime, citizens who receive tax payment notices should verify that the information is accurate according to the land and buildings they own. If there are discrepancies, they can appeal within 30 days from the date of assessment or the date they receive the notice,” Mr. Lavorn stated.

           Mr. Lavorn mentioned that the Ministry of Finance estimates that the first-year collection of land and building taxes for local administrative organizations will reach 40 billion baht, an increase from the previous collection of 30 billion baht, or an increase of 10 billion baht. The delay in tax collection will not affect overall revenue, as the responsibility for tax collection lies with the Ministry of Interior, while the Ministry of Finance's role is to educate taxpayers.

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