How to cool down house prices?

TPO - Recently, the price of houses and land in Hanoi, Ho Chi Minh City and neighboring areas has increased rapidly, affecting people's access to them. Therefore, the Government is assigning the Ministry of Finance to study the imposition of real estate tax in order to stabilize house and land prices.

Recently, at a meeting with localities to review three years of implementing Resolution 18 on land management and use on June 26, Deputy Prime Minister Tran Hong Ha said that Vietnam needs to review tax policies, especially on abandoned and ineffectively used land, to apply progressive taxes.

However, the Deputy Prime Minister said that the imposition of tax should avoid conflicting with the policy of land accumulation in agriculture . Tax should be levied on real estate speculators, not applied indiscriminately.

According to the Ministry of Construction , in the first quarter of the year, the volume of real estate transactions of apartments, individual houses, and land increased by 16-32% compared to the previous quarter, while prices of all types of real estate continued to increase. The real estate market is also experiencing an imbalance in supply and demand, with an unreasonable product structure.

Proposal to tax second and abandoned properties.

Talking to Tien Phong reporter , Mr. Nguyen Anh Que - Member of Vietnam Real Estate Association - analyzed that recently, the price of houses and land in Hanoi, Ho Chi Minh City and neighboring areas has increased rapidly, affecting the accessibility of people. Therefore, the Government is assigning the Ministry of Finance to study the tax on real estate with the aim of stabilizing the price of houses and land.

However, Mr. Que said that our country is aiming for double-digit growth and production is at risk of being taxed higher than before, public investment is large, so the role of the real estate industry as the core and driving force of economic growth is even more evident. Faced with the above two issues, the Government is facing a difficult problem of having to both tax to stabilize the real estate market and create conditions for the real estate market to develop further.

Mr. Que proposed that the second real estate onwards should be taxed on residential land and houses; in the case of a person having two real estates, one of which was left by his parents for worship purposes, there should be no tax on that real estate; in the case of a person having two or more real estates with the purpose of buying for their children, they must carry out the procedures for giving them as gifts to their children.

According to Mr. Que, this tax should be applied as a pilot first in Hanoi and Ho Chi Minh City, and the tax rate should be progressive based on the number of properties or progressive based on the value of the properties.

In addition, Mr. Que thinks that abandoned real estate should be taxed with criteria on what is abandoned real estate, which unit has the authority to evaluate. Taxation based on transfer time: Under 6 months 6%, under 12 months but from 6 months 5%, under 18 months but from 12 months 4%, under 24 months but from 18 months 3%, over 24 months 2%.

Economist Pham The Anh believes that taxing second homes will limit speculation and hoarding of real estate, which is creating ghost towns and a shortage of supply in the secondary market, pushing up real estate prices unreasonably. Vietnam should consider taxing second homes and beyond because of the many benefits this tax can bring.

"When the cost of owning a second home increases due to taxes, those who hold on to it will tend to use it more effectively by renting it out, putting it into production and business, or being forced to sell it off," said Mr. The Anh.

According to Mr. Thue Anh, the tax will increase supply, help cool down housing prices, keep the market healthy and avoid wasting resources.

Ngoc Mai

Source: https://tienphong.vn/cach-nao-ha-nhiet-gia-nha-post1755807.tpo