In a report sent to the Office of the Government, the Ministry of Construction said it will study and propose a tax policy for cases of owning and using many real estates to limit speculation and buying and selling in a short period of time to make a profit.
The Ministry of Finance is requested to study and advise on tax policies for second homes or abandoned or unused properties.
This proposal, when made, received mixed opinions from the public, experts and scientists.
PV of Lao Dong Newspaper had an interview with Mr. Nguyen Anh Que - Member of the Executive Committee of Vietnam Real Estate Association (VNREA) about this issue.
What do you think about the proposal for a second property tax?
- This is inevitable following the world trend, and many other countries have already implemented it. However, we still need to carefully consider when and to what extent it will be applied.
Taxation and application at this time is not appropriate. In fact, taxation will affect and cool down the real estate market.
Has this tax existed before, sir?
- From 2022, we will use financial tools to limit the heat of the real estate market, but the jerky and inappropriate approach will freeze the market, affecting many industries and the economy.
In fact, we have applied taxes to people who own a lot of land by taxing non-agricultural land from 0.03 - 0.15%, but because we have long applied according to the land price framework and there is no data on land nationwide, we have not yet felt this tax rate.
In the near future, when the national land data will be completed and the tax will be applied according to the annual land price list, this non-agricultural tax will not be small.
When do you think it is appropriate to tax the second property?
- I think the right time to implement the second real estate tax is around 2030, that is, after one amendment of the Land Law, Housing Law, Real Estate Business Law, and Investment Law.
We have to wait for another policy beat, but if we do it in the current phase, the regulations will not be consistent.
What specific roadmap do we need, sir?
- Policy making must take into account timing, roadmap, and suitability. It must be divided into many steps, not just said to be done right away.
There needs to be a roadmap of about 6-10 years to accumulate resources from society, only then can we begin to regulate to implement a land policy with long-term stability.
Building careful policies and applying them gradually will help limit negative impacts on the real estate industry in particular and the economy in general.
When implemented, it can be implemented in a roadmap with tax rates from low to high. If applied suddenly and too strongly, it can "break" the market, affecting the banking system and the economy.
If we immediately implement the second real estate tax, it could lead to a sell-off, causing great risks to the banking system, loss of liquidity, freezing the market, reducing budget revenue, and causing an economic crisis.
Thank you!
