In an interview with the Phuket Post Khun Tamrong Tongtan Chief of Phuket's Treasury Department has revealed that evaluation of the capital expenditures related to construction together with the land prices in Tessaban Phuket areas is on the cards, after a new land evaluation policy was approved by Phuket Governor Niran Kalayanamitr. The government department is keenly aware that the price of land is trebling in some locations, and in others spiraling “out of control”, and yet, reported prices do not reflect these large figures, leading to incorrect tax figures.
The close monitoring of the land prices has been decided upon in order to eliminate the discrepancies between real and disclosed prices. A new accounting system is planned with each area coming under a separate accounting head.

Khun Tamrong Tongtan said that first, the government would look to establish the price of the land in itself (without any construction), and then, if any construction exists or is planned, the land price will reflect costs of construction, labor cost, and the technology being utilized. Taxes will then be calculated on the over-all price of the land. Previously, the percentage of tax payed by land-owners has been uniform, meaning that small property owners with land in inexpensive areas have paid same tax percentages as those with vast holdings in prime locations.

The new methods will establish suitable tax ranges according to the size, location and overall worth.

Under the new system, the government departments will demand to know the rental value of the land or units, which are an indicators of current trends. Land assessments are conducted every four years and a new land assessment under the latest policy will commence in January 2008. The treasury dept advises people to be honest in providing the information. All transactions including buying, selling, renting, leasing are expected to come under closer scrutiny.

The government department feels that the new policy will in the end, make taxes fairer for the people

In a separate interview, Khun Tanet Niyom Chief of Phuket Province Land Office
told the Phuket Post that land prices on the island have skyrocketed in the recent years. Assessments every four years will keep track of the changes in the prices of land and establish new tax rates accordingly. Currently, assessed land prices are as follows: (Per Rai) Talang 4,800,000, Chern Talay 4,920,000, Kathu 8,000,000, Patong 12,280,000 baht, Karon areas 5,600,000 baht, Ratchada(Phuket town areas) 6,240,000 baht, Raiwai area 9,400,000 baht. Unofficial prices are reported to be much higher.