Legal Problems under the Land and Buildings Act 2019: Study of Problems from Provisions in Section 5 Paragraph Two and Section 37 (1), (4)

Abstract

Tax collection for land and buildings under the Land and Buildings Tax Act B.E. 2562, effective January 1, 2020. After the enforcement, it can be seen that there were two problems. The first problem states in section 5 paragraph 4, that the meaning of “buildings” of this section is not included machine, component part or inside equipments. The secound problem points out at section 37 (1) and (4), it sets up the waste or raw land taxation fee higher rate than tax of plantation. The study found that the calculation of the tax base under Section 5, paragraph 4, does not reflect the actual value of the property based on the principle of ability to pay tax, causing unfairness and disparity in tax collection. Regarding the land or building taxation issue under Section 37 (1) and (4), it was found that the criteria used in assessing agricultural land use needed to be more detailed. People take advantage of the gaps in the law by converting fallow or underutilized land into agricultural land. But they don’t have the intention of farming. Therefore, it is proposed to amend the provisions in Section 5, Paragraph 4, of the Land and Building Tax Act, B.E. 2562, and add additional criteria in the relevant notifications of the Ministry of Finance and the Ministry of Interior.