BANGKOK: Thailand will not renew property tax breaks when they expire at the end of March as the economy is recovering, but it will maintain some subsidies aimed at helping poorer people, the finance minister said on Feb 23.

"The cabinet took the view that the property measures should end as scheduled on March 28 because developers have returned to a normal profit level and the economic situation is picking up," Korn Chatikavanij told reporters after a weekly cabinet meeting.

The incentives, including a reduction in the property transfer fee, a cut in the mortgage registration fee and a lower special business tax, helped boost property transfers, which increased 7% in 2009, Korn said.

The government will also end its subsidy on water bills but it will maintain other relief measures, such as cheap public transport for low-income Thais, for another three months from March, he said.

The extension of these cost-of-living schemes would cost 4.5 billion baht ($461.7 million) in the current 2009/2010 budget. The government will review the schemes again in June. -- Reuters
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