Cabinet to consider new property measures

First, it is aiming to boost sales in the real-estate sector by offering a new tax-deductible incentive to home-buyers, ranging from Bt200,000 to Bt500,000 per unit, according to a senior ministry official, who asked not to be named.

Second, no visa fees will be collected from foreign visitors for a period of three months.

In addition, government agencies will be encouraged to use their budgets to hold more seminars and activities related to the tourism industry.

These measures are part of the second economic-stimulus package, which will be submitted to the Cabinet next Tuesday.

Last week, the Cabinet approved the first stimulus and social-welfare package worth Bt115 billion.

The new incentive to boost home purchases is designed to help developers reduce their inventories through more generous tax allowances.

"The tax-deductible allowance will be capped within a range of Bt200,000 to Bt500,000 per unit, or from 20 per cent to 50 per cent of a house's price.

"The new measure will be on top of the current annual Bt100,000 tax-deductible allowance for interest charges," said the official.

Moreover, the government will continue to waive property-transfer fees and business tax on property-developers until March 2010.