No policy for draft law on property tax

March 15, 2022 | 11:37
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The Ministry of Finance (MoF) made an announcement on March 14 stating that there is currently no policy in place to prepare a draft law on real estate taxation.
No policy for draft law on property tax

Ongoing efforts are being made to collect and analyse data related to taxation on both agricultural and non-agricultural land use.

However, the MoF stressed that a draft law has not yet been developed.

A thorough review of the law on tax for agricultural land use will be conducted by the MoF and take into account the challenges faced by ministries, branches, and municipalities. Solutions for improving tax rules relating to real estate on non-agricultural property will also be proposed and reported to the appropriate authorities, the MoF stated.

Last year, National Assembly chairman Vuong Dinh Hue suggested that Thanh Hoa province should implement a housing tax policy, and if successful, it should be scaled up to other areas.

This is a significant yet challenging policy, according to the chairman of the Thanh Hoa Provincial People's Committee, which necessitates a well-rounded database for in-depth discussion, examination, and appraisal.

The government issued Decision No.2161/QD-TTg dated December 22, approving the national housing development strategy for the next ten years.

In the decision, Prime Minister Pham Minh Chinh asked the MoF to propose some additional taxes relating to the real estate market. These include property tax on housing to stabilise the market, limit speculation, and effectively make use of residential real estate.

Le Hoang Chau, chairman of Ho Chi Minh City Real Estate Association also said that it was essential for the government to introduce taxes to limit speculation and increase transparency in the real estate market.

By Tri Lam

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