[NEWS] - Ministry of Finance: Taxing the second house and land in Ho Chi Minh City is not fair

According to the Ministry of Finance, the value of houses and residential land has a huge difference, if the tax on the second house and land, there will be cases where the house and land with a small value are subject to tax, and Houses and the land of a great deal are not subject to tax.

Taxation on housing, and residential land 2 or more may not ensure fairness in many cases. That is the opinion of the Ministry of Finance to the Ministry of Planning and Investment on developing a resolution to replace Resolution 54 of the National Assembly on piloting specific mechanisms and policies for the development of Ho Chi Minh City.

In the process of researching and developing a draft Resolution, Ho Chi Minh City proposed a number of mechanisms and policies in the field of finance and budget, in which the pilot proposed to collect taxes on houses and residential land, which people have the right to use land or own houses that are not directly used for living for individuals and families (referred to as houses, second land or more) in Ho Chi Minh City.

Commenting on this proposal, the Ministry of Finance said that this is a new policy due to the current Resolution 54. Taxing on second house and residential land will strongly regulate organizations and individuals with many homes and land, contributing to encouraging economical and efficient use of homes and land, as well as contributing to limiting investment real estate opportunities, encouraging the development of a healthy real estate market.

However, in fact, there is a huge difference in the value of houses and residential land, if tax is imposed on the second house and land, there will be cases where the house and land of small value are subject to the tax. tax and houses and the land of a great deal are not subject to tax.

Or the case of a person who has only one house or land with a large area or large value is not taxed, while a person with two houses and residential land with both small areas or values is taxed. "This does not ensure social justice, does not meet the promulgated objective of the tax policy, which is to reasonably regulate the income of a part of organizations and individuals that have ownership rights, land use rights, etc. of great value or having many houses and land," the Ministry of Finance stated.

The Ministry of Finance also said that this tax is not suitable for the actual conditions of Vietnam today. Because in Vietnam, real estate transactions are mainly done on the system of documents and papers, the application of information technology is still limited, so the identification of house and residential land ownership is still little. 2nd onward of organizations and individuals is complicated.

The agency is also concerned that taxpayers will find ways to evade taxes by letting someone else name it, or by agreeing on assets under the ownership of each family member.

Regarding the impact on the real estate market, the Ministry of Finance said that the tax on houses and residential land for the second time or more affects the rental housing market, which is not consistent with the State’s policy on development. housing development.

In particular, taxing rental housing will reduce both the supply and demand of rental housing, potentially affecting low-income people because most of the tenants are low-income people.

In addition, this tax is not in line with international practices. International experience shows that currently there are only a few countries in the world that levy taxes on owning a second home or more (such as France, and Croatia). Therefore, the Ministry of Finance proposes to consider removing this content in the draft Resolution.

Source: Collector