Because the real estate market is frozen, causing many consequences for the economy, if we consider applying progressive taxation, it will be like a blow to the real estate market that is struggling to get up after being "knocked out". Maybe, the market will be negatively affected, continuing to freeze more severely.
Reviving the real estate market is more necessary at this time, not only for the "life" of real estate businesses, but also for many related industries that have the opportunity to make a living, creating jobs for tens of thousands of workers. Not to mention, the activities of the real estate market will create a large source of revenue for the budget, if real estate decreases, the budget will shrink significantly. Typically, in Ho Chi Minh City, land use revenue in 2019 was 14,600 billion VND, in 2022 it was about 9,960 billion VND and in 2023 it was 4,640 billion VND, in the first 9 months of 2024 it was about 5,900 billion VND.
To get the real estate market out of its current situation, what needs to be done is to remove legal obstacles for projects in localities, creating maximum conditions for businesses to complete their products and bring them to the market. The freezing of projects with legal obstacles not only causes damage to businesses, but is a great waste for the whole society. The decrease in budget revenue in Ho Chi Minh City is due to frozen real estate, and real estate is frozen mainly due to legal obstacles.
Another thing that needs to be done is transparency in real estate ownership. Currently, the management of houses and land is not accurate, this is the key point to have a basis for taxation that needs to be completed before considering the application of tax policies. To manage the real estate sector well, it is necessary to implement digitalization programs, build a database warehouse, instead of manual operations.
A revived, stable, and transparent real estate market is what needs to be done now. Once stability and transparency are achieved, taxation is appropriate.
In general, applying a progressive tax rate to people who own many houses and lands is necessary. However, when to apply it and how to tax it appropriately are things we need to study carefully.
Production and business activities of enterprises and people are still facing difficulties. Applying taxes to people who own many houses and land may have a certain impact on the ability to recover.
