Thai govt ends property tax breaks as economy recovers

"The cabinet took the view that the property measures should end as scheduled on March 28 because developers have returned to a normal profit level and the economic situation is picking up," Korn Chatikavanij told reporters after a weekly cabinet meeting.

The incentives, including a reduction in the property transfer fee, a cut in the mortgage registration fee and a lower special business tax, helped boost property transfers, which increased 7 percent in 2009, Korn said.

The government will also end its subsidy on water bills but it will maintain other relief measures, such as cheap public transport for low-income Thais, for another three months from March, he said.