Talks on continuation of reduced property fees

The Finance Ministry is in talks with the Interior Ministry about the possibility of renewing the reductions in the property transfer and mortgage fees for at least another year, said the ministry’s permanent secretary Krisada Chinavicharana.

The measure, which was launched to help boost housing demand and purchasing power almost two years ago, is scheduled to expire on Dec 31.

The measure cut the property transfer fee to 0.01% from 2% of the appraisal price and the mortgage fee to 0.01% from 1% of the loan value. This covers new residential units with an appraisal of 3 million baht or less.

Mr Krisada said real estate firms proposed to the government to renew the measure and the cabinet resolved to ask the Finance Ministry to consider the renewal in more detail.

The ministry is in talks about the matter with the Interior Ministry, which is in charge of collecting these two fees, and also the Budget Bureau and the Fiscal Policy Office.

He said the Finance Ministry has to consult with the Interior Ministry as this fee cut measure has resulted in loss of revenue for the latter.

Both ministries also have to consult the Budget Bureau on how to compensate the Interior Ministry.

The Finance Ministry is also considering launching stimulus packages to inflate the flagging economy in the fourth quarter amid the prolonged pandemic, he added.

Last week, Finance Minister Arkhom Termpittayapaisith said the ministry might pump fresh money into the economy in the fourth quarter and extend stimulus measures in an effort to revive the economy.

He said the ministry wants to stimulate spending in the fourth quarter as many economists and companies forecast a stagnant economy this year, attributed to the impact of the prolonged pandemic.