The National Legislative Assembly's (NLA) standing committee on the land and buildings tax needs more time to vet the organic law, says deputy finance minister Wisudhi Srisuphan, but he declined to specify whether the law's enforcement will meet the schedule set for January next year.

The committee needs to ensure the organic law's details are implemented in compliance with the agreement, so deliberation requires more time, he said.

Even though organic laws are usually drafted by the government, the NLA's standing committee agreed it would be responsible for this one to prevent details in the organic law from differing with the ones agreed upon, said Mr Wisudhi.

The organic law consists of waivers, relaxation or impact alleviation for the land and buildings tax, he said.

Given that the new property law will have a wide-ranging effect on farmers, citizens, businesses and state enterprises, it is essential to offer tax relief for special purpose buildings, piers, dams, airports, and land and buildings of state enterprises such as PTT Plc and Bangkok Mass Transit Authority, said Mr Wisudhi.

The draft on the land and buildings tax is being vetted by the NLA standing committee after passing the first reading. The committee agreed to call for a ceiling tax rate for homes of 0.3%, down from 0.5% proposed by the Finance Ministry; an agricultural use rate of 0.15%, down from 0.2%; and other use and undeveloped land at 1.2%, down from 2%.

The NLA's version also proposes to trim the exemption ceiling for first homes to 20 million baht from 50 million proposed by the Finance Ministry. The committee's proposal requires owners of first homes appraised at 20-50 million baht to pay a property tax rate of 0.02%, or 200 baht for every million baht that exceeds the exemption threshold, and 0.03% for houses valued 50-75 million baht, 0.05% for those more than 75-100 million, and 0.1% for houses appraised at more than 100 million.

Second homes will be taxed 0.02% for property with appraisal value of up to 50 million baht, 0.03% for 50-75 million, 0.05% for value of 75-100 million and 0.1% for more than 100 million.

The draft bill proposed by the Finance Ministry called for the tax to be levied on first-home owners and farmland appraised at more than 50 million baht. A tax rate of 0.05% would be applied to first homes and agricultural land worth 50-100 million, and 0.1% for homes above 100 million. People owning second homes would be taxed 0.03% for homes with appraisal value of no more than 50 million, 0.05% for value of 50-100 million and 0.1% for more than 100 million.

The new tax replaces the outdated house and land tax and local development tax.