Tax is just one of the problems
In recent days, the proposal to apply a tax rate of 20% on taxable income (selling price minus purchase price and related costs) from real estate transfer activities has received many mixed opinions from people, experts and investors.
Some opinions say that this proposal can regulate taxes more accurately based on actual income, limit low pricing declaration loopholes and reduce speculation and surfing, while increasing transparency in the real estate market, thereby lowering house prices.
Talking to Lao Dong reporter, economic expert, Dr. Nguyen Minh Phong commented that to reduce speculative activities and ensure market stability, taxes are just one of the measures that need to be applied.
"In Vietnam at present, the problem is not taxes, but supply. To ensure market stability as well as abundant supply, commensurate with demand and especially reduce virtual demand, there needs to be policies related to supply and aspects of price control, not taxing the activities of buyers and sellers.
I think, first of all, it is necessary to promptly handle problems related to planning. By the end of 2024, all provinces and cities had approved the planning, but after the merger, there was a period of waiting and this waiting time caused a "frozen" situation in many projects. Even if the project is approved, it must continue to wait, review and rearrange according to the new plan. I think the National Assembly and the Government need to handle this issue first" - Mr. Phong said.
Dr. Nguyen Minh Phong said that there should be a resolution of the National Assembly or a direction from the Government to allow projects that have been approved according to the old plan to continue to be launched, without having to wait for the new plan of the new province because it will be a long time before the new plan is completed.
"If this cannot be done, supply will continue to decrease, no matter how much tax is imposed, it will not increase supply" - Dr. Phong shared.
According to Mr. Pham Duc Toan - CEO of EZ Property Real Estate Investment and Development Joint Stock Company, taxing 20% on taxable income from real estate transfer activities even increases housing prices.
"Taxing needs to be done correctly. I think, first of all, it is necessary to build a complete national housing database, thereby having a basis to tax.
Second, taxing is very difficult to implement, because of its impact. First, the taxation causes housing prices to immediately increase, which very negatively affects the real estate market. While we are setting a goal: first is to reduce investment in storage and short-term investment to stabilize prices in the market; second is to increase budget revenue, but these two goals have not been achieved" - Mr. Toan said.
Therefore, when the information appeared that the Ministry of Finance withdrew this proposal, keeping the current 2% tax rate on transfer value, Mr. Pham Duc Toan expressed his agreement.
Planning must prioritize the low-cost segment, not according to investors' wishes
To reduce housing prices, Dr. Nguyen Minh Phong said that project planning needs to orient product structure to ensure that products are suitable for real needs.
"Currently, there is a surplus of luxury apartments, a shortage of mid-range segments, and low-cost housing. Therefore, planning must also be prioritized to ensure stable supply, not just according to investors' wishes.
In addition, it is necessary to pay attention to the issue related to the land price list. There is currently a situation where the land price list of some provinces suddenly increases by 10 times, which is unreasonable. Localities may not have a specific basis or lack caution, so adjusting the price too high, creating a situation where prices are very high, combined with prices that cause prices to increase.
It is time to review, adjust or clarify the regulations on land price framework. There needs to be a certain framework, or a way of calculating to ensure that prices do not spike like that" - Mr. Phong shared.
