Thailand: Treasury mulls cuts in rental fees

• Aug 19, 2020

The Treasury Department could reduce rental fees for 30-50 business lessees of state properties to mitigate Covid-19 impact.

Many businesses have submitted letters to the Treasury Department requesting a reduction in rental fees by 50%, said director-general Yuttana Yimgarund.

Airports of Thailand Plc, Phuket Ferry and various small and medium-sized enterprises operating in the hotel sector are some of the businesses requesting a rental fee reduction.

Some business lessees have also asked for an exemption from rental fees, Mr Yuttana said.

The Treasury Department will assess whether these requests can be approved in accordance with state property rental rules, he said.

A 30-40% cut in rental fees could apply in cases where business lessees still generate some income, while a 50% reduction could be used for those receiving no income from operations, Mr Yuttana said.

Rental fee exemptions could be attached to a condition to retain existing employment, he said.

The decision on whether to approve rental fee reductions is likely to be finalised in September.

The Treasury Department is maintaining its revenue collection target of 8.7 billion baht, with year-to-date revenue collection already exceeding the target at 10 billion baht.

Despite deferral of rental fees from some state properties, the department’s proactive management of state properties and rental fees generated from special economic zones has compensated for the deferral portion.

For fiscal 2021, the department is keeping its revenue collection target unchanged at 9.2 billion baht, as the amended Ratchaphatsadu Land Act will compel state-owned enterprises to pay rental fees to the department.

Source: https://www.bangkokpost.com/business/1970603/treasury-mulls-cuts-in-rental-fees