A controversial draft bill on the land and buildings tax will be reviewed and is expected to take four months to complete.

The draft bill will become clearer during that time, Finance Minister Sommai Phasee said after meeting with an appointed committee on tax reform.

The new tax has stoked fears among homeowners and landlords, particularly middle-income earners, that their tax burden would be too high. Following a public outcry, Prime Minister Prayut Chan-o-cha decided to shelve the tax bill for further study, citing the economic slowdown and possible effects on low-income earners.

However, Mr Sommai later said he would continue to push for the tax bill to receive cabinet approval under the present government's tenure.

Kitipong Urapeepatanapong, a member of the committee on tax reform and chairman of the local office of law firm Baker & McKenzie, said applicable tax rates and allowances would be finalised during the review process.

The actual rates for the new tax are expected to be low, he said without providing further details.

The land and buildings tax was listed as one of the government's priorities as it seeks to narrow economic disparity, raise government revenue streams since hefty investment is needed for infrastructure projects and improve land use.

Based on the ministry's latest proposals, homeowners would be charged 0.1% of the appraised value. Land for agricultural and commercial use would be taxed at 0.05% and 0.2%, respectively. Houses with an appraised value of up to 2 million baht would receive a 75% tax allowance, translating into a 250-baht tax payment for every 1 million.

Residences with an appraised value of 2-4 million baht would receive a 50% tax allowance, with homeowners liable to pay 500 baht for every 1 million on amounts exceeding 2 million but no more than 4 million. For houses with an appraised value of more than 4 million baht, owners must pay 1,000 baht for every 1 million of appraised value for amounts exceeding 4 million.

Land for agricultural use with appraised value of less than 1.5 million baht would be exempt from tax, while landlords of vacant land would be punished with a tax rate increase every three years, not exceeding the ceiling rate.

In another development, Lavaron Sangsnit, deputy director-general of the Fiscal Policy Office, said the ministry's tax reform committee agreed to seek more incentives to attract small business owners to enter the formal tax system and were exploring methods to convince more individuals who did not owe tax to file personal income tax forms.

A negative income tax, which allows people earning below a certain amount to receive a state subsidy, is being considered. The committee is scheduled to meet again next month to consider proposals, he said.