New rental fee structure to boost Treasury with B1bn
The Treasury Department says its new rental fee calculation is expected to boost this year’s revenue to 8 billion baht from 7 billion forecast previously.
The new calculation method has already been applied to the department’s land lease agreements with Bangchak Petroleum, Thai Oil and Airports of Thailand, said directorgeneral Chakkrit Parapuntakul.
Under the new formula, the department adds the revenue-sharing factor into the rental rate’s calculation if fees plus annual rent, which were used in the previous computation, is a value lower than 3-4% of return on assets (ROA).
However, there is no need to include the revenue-sharing factor if the value resulting from fees plus annual rent is within a range of 3-5% of ROA.
The new calculation method is being enforced from this year, while the Treasury Department will begin using it in 2018 for those who renew lease agreements this year, he said.
The department will also prevent dramatic rent surges from the new calculation method by gradually raising rents over five years, Mr Chakkrit said.
The Treasury Department recently reached an agreement with Airports of Thailand (AoT) to apply two lease rates in a new contract for Suvarnabhumi airport.
The lease rates will be based on revenuesharing at 5% for aviation areas and ROA for non-aviation commercial space.
Applying the two different rates in rental fee calculations is aimed at warding off additional costs for passengers and airlines.
Mr Chakkrit said that the Treasury Department will earn higher revenues from a land lease contract renewed with Thai Oil after the new rental rate is applied.
The oil refinery paid 200 million baht a year in rent to the department.
For tenants of the Treasury Department’s shophouses and commercial buildings, the department will continue to apply the previous calculation method, he said.
The Treasury Department holds the most land among state agencies at 12.5 million rai across the country and it has more than 100,000 rental and lease contracts with tenants and lessees.
Of the total 100,000 contracts, 30 are let to state enterprises and the remainder to the private sector.
It earned revenue of 6 billion baht, of which half was derived from land and building leases and rents.
The department will put the final two models of a combined 1 million commemorative coins approved under the late King Bhumibol Adulyadej on sale to the public during March 1 to 3 and between March 6 and 7 at a price of 20 baht each.
The first model was minted to commemorate Thailand joining the Asean Economic Community. The other one was produced to mark the 100th anniversary of Thai Cooperatives.
Mr Chakkrit said the department will mint 39.9 million nickel coins to mark the cremation ceremony of His Majesty King Bhumibol, to be sold at 100 baht each. Made-to-order coins will be minted in gold, silver and bronze at a price of 50,000, 3,000 and 2,000 baht, respectively.