by Asia Land For Sale 
The Bangkok Metropolitan Administration (BMA) wants to close land tax loopholes that have seen some owners turn their holdings in prime areas into makeshift banana and lime farms. This allowed them to enjoy the agricultural land tax rate of 0.01-0.1 percent as opposed to the 0.3-0.7 percent applied to undeveloped commercial plots.
A source at the BMA told the Bangkok Post that up 12,000 land plots in Bangkok could be taking advantage of the current tax loophole which is costing the government a significant amount of revenue each year.
While new tax regulations have already been drafted, these still need to be submitted to the Bangkok city council for approval. Additionally, the BMA is seeking guidance from Finance Ministry’s Fiscal Policy Office regarding its plan to make the full collection on lands used for agricultural purposes.
That means it is unlikely the rates will go into effect for the 2022 fiscal year. Instead, the new tax rates for land will probably begin with the 2023 fiscal year which starts in October. The hope is landowners will be motivated to develop their land instead of paying higher taxes.
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Parks could replace current land tax loopholes
Those not wishing to sell or develop will be eying the BMA’s plan to turn privately owned unused lands into public parks. While details are still being drawn up, those who convert their sites into a park will be eligible to receive a tax break.
“The criteria are expected to be completed in August so it can be implemented in the next fiscal year. Initially, we must first consider which areas will be turned into parks, how large they should be and how much money is needed,” the source told the newspaper. “The BMA has to shoulder maintenance costs and it may not need the entire plot offered. For example, if it receives an offer of 10 rai, it may want just two rai for its park project and collect land tax for the remaining eight rai.”
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