The Thai house is about to lose its tax benefits, with its tax bill being reduced by more than $2.8 million this year.
The Thai Finance Ministry announced Friday that the government will reduce the subsidy from 7.5 percent to 5 percent next year, but that it will keep the house tax rebate at its current level of 2.2 percent.
The government will also allow the sale of the house, but only if it can be refurbished and renovated in accordance with a new, higher tax bill.
It is not clear when the tax bill will be reduced, but the move is expected to be finalized in December.
The move comes as the government faces another looming budget crisis as it prepares to reduce the deficit in 2019.
The Finance Ministry said Friday that its total budget deficit will fall to 4.3 percent of GDP from 5.6 percent in the previous fiscal year, and the government is expected by the end of the year to report a budget surplus.
The Thai House was built in the 1950s as a hotel and now houses more than 20,000 Thai nationals, mostly in Bangkok.
The house has a history of controversy over its treatment of the Rohingya, who are a persecuted minority in Myanmar, and a Thai court has ruled that the property should be turned into a mosque.
Thailand is a Southeast Asian country with more than 2 million Rohingya in camps in the country.
Myanmar, a Southeast Asia country with an increasingly Muslim population, has accused Thailand of supporting the Rohingya and other ethnic minorities in the region, though the government has denied the accusation.
Follow Ryan Maue on Twitter at @RMaue.