Land and Building Tax: A Mechanism for Promoting Equity and Reducing Inequality in Thai Society

Abstract

               This article examines the Land and Building Tax as a policy instrument for promoting economic equity and reducing asset ownership inequality in Thai society. It analyzes the Land and Building Tax Act B.E. 2562 (2019), which represents a pivotal shift in Thailand’s property tax regime from an outdated and opaque system to a more progressive and purpose-driven framework. The new law introduces differentiated tax rates based on land use and adopts a progressive tax structure aimed at promoting fairness. Despite these intentions, several challenges persist in practice, including incomplete property databases, undervaluation of land for taxation purposes, excessive exemptions, and limited capacity of local authorities in tax administration. The article also draws comparisons with East Asian countries such as Japan, South Korea, and Taiwan, where effective property taxation is underpinned by accurate valuation systems, digital technology integration, and decentralized tax administration. Based on this comparative analysis, the article proposes policy reforms to enhance the effectiveness of Thailand’s land taxation, focusing on structural improvement, regulatory enforcement, and integration with broader public policy goals. Ultimately, the study argues that a well-designed land tax system can serve as a sustainable mechanism for narrowing inequality and strengthening fiscal justice.