REFORMING THE LAND AND BUILDING TAX LAW : CASE STUDY OF GREEN HOTELS

Abstract

The tourism and hospitality industry is widely recognized as a major driver of economic growth; however, it is also acknowledged as a significant contributor to environmental degradation. This degradation stems from excessive consumption of natural resources, substantial volumes of waste generated throughout the service process, and high levels of carbon dioxide emissions that further accelerate global warming. As a result, reducing these negative environmental impacts has become an urgent and unavoidable necessity rather than a voluntary or optional initiative. In this context, the concept of the Green Hotel has emerged as a practical and comprehensive framework that encourages hotel operators to incorporate environmentally responsible practices and sustainable management strategies into their operations. Nevertheless, the current land and building taxation system applied to hotel businesses in Thailand may lead to inequitable outcomes and pose obstacles that hinder the hospitality sector’s transition toward sustainable development.

            This article seeks to examine the principles and practical approaches to land and building taxation for green hotels in Thailand, as well as in selected international jurisdictions, specifically the United States (New York City), Canada (British Columbia), and Singapore. It further aims to propose taxation guidelines that are appropriately tailored to Thailand’s legal, economic, and environmental context. To achieve these objectives, the research employed a documentary methodology, gathering and analyzing relevant legislation, academic publications, prior research studies, policy papers, and both electronic and printed materials issued by governmental agencies, private-sector organizations, and public institutions in Thailand and abroad. The findings indicate that the current Thai land and building tax system under the Land and Building Tax Act B.E. 2562 (2019), together with associated legislation, presents several challenges arising from its valuation methods, assessment procedures, and the absence of specific tax incentives for businesses seeking to adopt green hotel practices. These structural limitations may discourage hotel operators from investing in environmentally friendly improvements. Therefore, revisions to valuation procedures, along with the introduction of explicit tax benefits or incentive mechanisms for green hotels, are essential measures to promote fairness, encourage environmental responsibility, and support long-term sustainable development within the hospitality industry.