Proposal for the promulgation of the Property Tax Law

30/08/2017   Viewed: 893
The new property tax law will help stabilize the real estate market, prevent speculation and wasteful use, increase the source of power to the market, and increase the state budget revenue. Stable, long term
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The tax law will create more demand for access to housing, increase the state budget revenue stable (Illustration).

Recently, the Ministry of Finance has made a report on the tax policy for real estate in order to develop the Law on Property Tax, in which taxable objects are properties of land, especially the ownership of many houses. , From the second base onwards.

This tax law aims to help the real estate market develop healthily, transparently and sustainably, prevent speculation and wasteful use of real estate, contributing to the flow of money instead of investing in real estate. Switching to invest in production, business and services, increasing supply to the market, creating more supply for people with real needs to buy housing, and increase State budget revenues in a stable and long Term, sustainable. In addition, the tax law will also direct secondary investors to choose the establishment of real estate business instead of individual business today.

In Vietnam, only the non-agricultural land use tax law effective January 1, 2012 has stipulated that non-agricultural land categories, including urban residential land, are subject to tax; Applying the tax rate of 0.03% on the land price list, for the land area in the quota; The tax rate of 0.07% shall apply to the portion of residential land in excess of three times the quota; The tax rate of 0.15% is applicable to the area of ​​residential land exceeding 3 times the quota.

The land price calculated in accordance with the city's land price index is only about 30% - 40% of the actual market price, so the tax rate is very low, resulting in a very low budget revenue. 03% of GDP and 0.15% of total state budget revenues.

In addition to the function of generating state budget revenue, tax is also a tool for regulating the economy, regulating activities and production, investment, business and service activities, and the promulgation of the Law on Property Tax. It is really reasonable to simultaneously amend the policy and mechanism of land use fee collection under the current Land Law which is inadequate.

Land use fees are not a tax, nor a fee, but are actually a major source of revenue in the local budget, a burdensome burden for businesses and homebuyers, and a lack of transparency. "let".

Land use fees account for a large proportion of the cost of housing, about 10% for condominiums; About 30% for townhouses; About 50% for villas. Therefore, if the Law on Property Tax is not promulgated without amending the land use fee policy and mechanism, it will be unreasonable.

The application of land use levies when the state allocates land or permits the conversion of land use purpose, in the first years, will have the effect of reducing the land use levied by the provincial budget which is currently an important revenue source. The importance of the locality, but will help businesses and consumers reduce the burden of land use today, helping to reduce housing costs; The enterprise can predict the cost of land use tax when investing in the project.

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