Progress on Hometown Tax and Local Revenue Reform

MGR Online•Politics•2d ago

Reader Briefing

The Ministry of Interior is leading the drafting of a new Act to establish a local income tax and donation system to increase revenue for local administrative organizations.

•The Ministry of Interior is drafting the Act on Income Tax System and Money Donation for Local Development B.E. ....
•The Prime Minister assigned the Ministry of Interior to be the lead agency in considering recommendations from the Senate Committee on Local Government.
•The proposed law allows local administrative organizations to receive 10% of income tax from taxpayers residing or operating in their province.
•The initiative aligns with the Bhumjaithai Party's "Hometown Tax" policy.

Overview

•On July 18, 2026, the Ministry of Interior reported progress on drafting the Act on Income Tax System and Money Donation for Local Development B.E. ....
•The Prime Minister assigned the Ministry of Interior to collaborate with the Ministry of Finance, Ministry of Agriculture and Cooperatives, Ministry of Natural Resources and Environment, Bureau of the Budget, and the Office of the Permanent Secretary of the Prime Minister.
•The reform aims to increase the self-reliance of local administrative organizations and enhance their capacity to provide public services.
•Santithorn Yimlamai, Deputy Permanent Secretary of the Ministry of Interior, participated in reviewing the Senate Committee on Local Government's report on revenue collection efficiency for Bangkok and Pattaya City.
•The draft law proposes that local administrative organizations receive 10% of income tax collected from taxpayers with a domicile or business in that province.
•Local administrative organizations may issue ordinances to collect additional income tax not exceeding 10% of the rate collected by the Revenue Department.
•The draft law designates donations to local administrative organizations as public benefit expenses deductible under the Revenue Code.
•The Ministry of Interior will summarize the findings and proposals for submission to the Secretariat of the Cabinet and then to the Cabinet for consideration.

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Key Entities

Organization

Ministry of Interior(กระทรวงมหาดไทย)ℹ️

The lead agency assigned by the Prime Minister to improve local revenue collection efficiency and draft the local tax law.

Bhumjaithai Party(พรรคภูมิใจไทย)ℹ️

The political party whose policy aligns with the 'Hometown Tax' collection approach.

Local Administrative Organizations(องค์กรปกครองส่วนท้องถิ่น)

Local government entities intended to have increased revenue and self-reliance through the new tax system.

Senate Committee on Local Government(กมธ.การปกครองท้องถิ่น วุฒิสภา)

The committee that provided reports and recommendations on improving revenue collection for local administrative organizations.

Ministry of Finance(กระทรวงการคลัง)ℹ️

The agency responsible for transferring collected taxes to the Ministry of Interior.

Ministry of Agriculture and Cooperatives(กระทรวงเกษตรและสหกรณ์)

An agency collaborating with the Ministry of Interior to consider the Senate committee's report.

Ministry of Natural Resources and Environment(กระทรวงทรัพยากรธรรมชาติและสิ่งแวดล้อม)ℹ️

An agency collaborating with the Ministry of Interior to consider the Senate committee's report.

Bureau of the Budget(สำนักงบประมาณ)ℹ️

An agency collaborating with the Ministry of Interior to consider the Senate committee's report.

Office of the Permanent Secretary of the Prime Minister(สำนักปลัดสำนักนายกรัฐมนตรี)

An agency collaborating with the Ministry of Interior to consider the Senate committee's report.

Secretariat of the Cabinet(สำนักงานเลขาธิการคณะรัฐมนตรี)

The office that will receive the summarized findings for further presentation to the Cabinet.

Revenue Department(กรมสรรพากร)

The agency responsible for collecting the income tax as per the draft law.

Committee on the Decentralization to Local Administrative Organizations(คณะกรรมการการกระจายอํานาจให้แก่องค์กรปกครองส่วนท้องถิ่น)

The body that announces the criteria, methods, conditions, and rates for tax allocation to local administrative organizations.

Person

Santithorn Yimlamai(สันติธร ยิ้มละมัย)

Deputy Permanent Secretary of the Ministry of Interior and head of the community development and local government promotion mission group.

Law

Act on Income Tax System and Money Donation for Local Development B.E. ....(พ.ร.บ. จัดระบบภาษีเงินได้และบริจาคเงินเพื่อการพัฒนาท้องถิ่น พ.ศ. ....)

The draft legislation proposing a system for local administrative organizations to receive income tax and donations.

Revenue Code(ประมวลรัษฎากร)

The existing tax law used to determine income tax and public benefit donation deductions.

Place

Bangkok(กรุงเทพมหานคร)ℹ️

A special-form local administrative organization mentioned in the revenue collection study.

Pattaya City(เมืองพัทยา)ℹ️

A special-form local administrative organization mentioned in the revenue collection study.

Policy

Hometown Tax(ภาษีบ้านเกิดเมืองนอน)

A policy by the Bhumjaithai Party to increase local revenue via income tax based on domicile.