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Published on March 31, 2008

The Finance Ministry has come up with another stimulus package after releasing the first round of tax incentives on March 4.

The ministry believes that property is a key industry that will contribute greatly to the government's new gross-domestic-product growth target of 6 per cent for this year. Property and construction combined accounted for 6.2 per cent, or Bt264 billion, of last year's GDP.

Together with building materials, furniture and consumer electronics, the housing business could help raise its contribution to GDP by up to 20 per cent through the multiplier effect.

"The new measures are likely

to include one that has been proposed by the Government Housing Bank to promote mortgage loans

to first-time home-buyers among low-income households," CIMB Securities said in a recent research note.

The total amount for injection into the credit system is estimated at Bt20 billion. Details are being studied and the ministry's proposal will be discussed at tomorrow's Cabinet meeting.

The tax breaks already revealed are highly likely to be implemented early next month, sooner than planned. The proposed law is now in the final stage, pending publication in the Royal Gazette.

LPN expects 60 per cent of its sales this year to come from its Condo-Town low-end projects.

Preuksa estimates that 25-30 per cent of its 2008 sales will stem from low-earning customers. However, the impact could be more meaningful for Preuksa than LPN, CIMB said.

The Nation