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Concerns Arise Over Tax Benefits for Housing Incentive Scheme

Industry executives argue that the government’s housing incentive program is unjust for low-income earners and discriminates against purchasers of second-hand and self-built properties, which have a similar economic multiplier effect as new homes. The Home Builders Association has requested the government to refund the 7% value-added tax for customers purchasing self-built houses from builders.

By doing so, the government could collect more corporate tax from home building firms, since they must declare their tax invoices to the Revenue Department, said association president Vibul Chantradilokrat. Moreover, builders are required to request tax invoices from construction materials and equipment suppliers, creating a multiplier effect involving all parties in home construction.

Under the new government initiative, individuals can deduct up to 10% of the cost of a new home worth up to 5 million baht from their personal taxable income over five years in equal amounts. However, a senior Finance Ministry official noted that many low-wage earners are not subject to income tax, and a person must earn at least 30,000 baht monthly to benefit from the scheme. The 10% ceiling is only eligible for taxpayers with a minimum of 4 million baht in taxable income annually, subject to the highest rate of 37%.

ThaiVest Editorial Team
The Thaivest Editorial Team is a dedicated group of writers and editors with a passion for Thailand's vibrant economy, culture, and lifestyle. With diverse backgrounds in finance, economics, and journalism, we provide valuable insights into living well in Thailand, making money online, and practical tools for navigating its dynamic market. Our mission is to keep our readers informed about the latest developments, opportunities, and challenges in Thailand's economic and cultural landscape. Stay connected with Thaivest for reliable, well-rounded coverage of all things Thai.