Price limit change to aid would-be buyers
The Finance Ministry looks set to propose an increase in the limit on home prices eligible for a reduction in the transfer fee and mortgage registration fee to 5 million baht, from the current level of less than 3 million baht, in an effort to stimulate the real estate sector.
Deputy Finance Minister Krisada Chinavicharana said yesterday that the Fiscal Policy Office is considering adjusting the threshold for house prices that are eligible for tax benefits, in a bid to expand the scope of transactions eligible for such tax incentives, which would help to stimulate the economy.
The proposal originates from the private sector.
The government has implemented measures to stimulate the real estate sector by reducing transfer fees from 2% to 1% of the transaction value, and mortgage registration fees from 1% to 0.01% of the transaction value. This is aimed at reducing the burden on property buyers and further stimulating the real estate sector, which contributes up to 10% of GDP.
However, to qualify for these benefits at present, the property must be valued at no more than 3 million baht.
According to Mr Krisada, in addition to such measures aimed at stimulating the real estate sector, the Finance Ministry is in the process of preparing several other economic support measures. These include distributing 10,000 baht via a digital wallet to Thai citizens aged 16 and above, totalling 50 million people, which would require about 500 billion baht worth of funding.
Mr Krisada said the ministry has also instructed the Comptroller-General’s Department to expedite disbursement of investment funding for government agencies.
The government’s 2024 Expenditure Budget Act has been delayed by about six months. Therefore, government agencies with investment budgets need to accelerate their spending, he said.
According to Mr Krisada, while the government’s 2024 Expenditure Budget Act has
‘‘ The ministry has instructed the Comptroller-General’s Department to expedite disbursement of investment funding for government agencies. KRISADA CHINAVICHARANA Deputy finance minister
not yet been officially enforced, the government has resorted to utilising the previous fiscal budget act to bridge funding gaps.
Between Oct 1, 2023, and March 8 this year, the government disbursed 1.35 trillion baht from the fiscal 2024 budget, with plans to spend around 1.1 trillion baht from April to June.
The 2024 expenditure budget calls for total funding of 3.48 trillion baht, marking another fiscal deficit year for the government.
The budget plan calls for borrowing of 693 billion baht to offset the deficit. Key spending aimed at stimulating the economy include investment expenditure, set at 717 billion baht for fiscal 2024.
The department has set a 75% disbursement target for investment expenditure in fiscal 2024.
The Fiscal Policy Office estimates that every 100 billion baht spent on government consumption will increase real GDP by 0.24% and raise the inflation rate by 0.1%.
For every 100 billion baht invested in government projects, real GDP increases by 0.28% and the inflation rate expands by 0.11%, according to the office.