Cabinet to Consider Draft Property Tax

17 April 2010

Finance Minister Korn Chatikavanji announced that the draft of the land and building tax will be up for review by the Cabinet on Tuesday.

The draft property tax law has been on the table for months and is among the most significant changes to Thailand’s tax system in recent years.

Chatikavanji has reportedly said that the law will increase land use efficiency, particularly by increasing tax rates for properties that remain unused.

Agricultural land will not be taxed; temples, crown land and poor land holders will not be taxed.

Those who own large amounts of land and those who gain land and buildings though inheritance are expected to face large tax increases.

Public Assembly Bill to be Reviewed

16 April 2010

The Council of State is reviewing a public assembly bill over concerns that the bill may restrict the right of the public to assemble peacefully.

 The Cabinet passed the bill in early October of last year.  But the government has said that since the right to public assembly is enshrined in the Constitution, it fears that such a bill may be successfully challenged in the Constitutional Court.

Thailand does not have a specific law that regulates public gatherings, protests and assemblies.  The draft bill outlines that: public gatherings must be peaceful, without weapons, and not limit peoples’ movement or use of public roads; organizers have to notify authorities 72 hours in advance, outlining their plans and personal details; organizers must remain with the protest for the entire duration; protesters cannot wear camouflage; courts may ban the protest if it violates these restrictions.

A subcommittee for law reform reportedly said that the state should be able to regulate protests and public assemblies but not restrict the public’s right to assemble.  Also, the executive branch of the government should have the power to disband demonstrations, not the courts.

US Trade Barriers with Thailand Remain

5 April 2010

Despite rumors signaling the improvement of Thailand’s status on the United States’ trade watch list, the US’s latest report on trade suggests that Thailand will remain as a Priority Watch List (PWL) country, media reported.  The watch list monitors the trading policies and practices of the US’s trade partners.   Without the status upgrade, Thailand’s exports to the US will still face high tariffs.

The Thai government had been pressing the US to change Thailand’s trade status to a “Watch List” country.   Given Thailand’s recognized progress on protecting intellectual property rights, some Thai officials still put hopes on the high possibility of the status improvement.

The US National Trade Estimate Report on Foreign Trade Barriers 2010, released by the office of the US Trade Representative at the end of March, cited the following problems, including:  non-transparent practices, high tariffs, inadequate protection of intellectual property rights, and inefficient standard certification process.

Specifically, it said that Thailand’s Price Control policy was not transparent.  The powers exercised by the Thai customs officials were also cited as non-transparent, due to their authority to increase the customs values of imports at will.  Thailand’s high tariffs on US products, such as agricultural products (with tariff of 43%), processed food products (30 to 50% tariffs) and textile products (20% tariffs), were also cited in the report.