Property tax not under consideration, Ministry of Finance clarifies

By Quynh Trang   March 14, 2022 | 08:27 pm PT
Property tax not under consideration, Ministry of Finance clarifies
Buildings are seen in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
The Ministry of Finance has clarified that it is not considering a new property tax to allay developers’ anxiety following recent reports it is doing so.

On February 24 it had written to government agencies and localities seeking feedback on several laws, including on real estate.

It had asked if it should combine the laws on use of agricultural and non-agricultural lands, impose a new housing tax and consider a law on taxing assets in general, including real estate.

But in a release Monday it said this was a routine evaluation of the implementation of laws as directed by the Prime Minister’s Office.

If any agency or local government wants a property tax, it would report that to the government for consideration, it said.

Taxing property has been discussed often by officials and experts in the past.

The chairman of the National Assembly, Vuong Dinh Hue, had last September called on the central province of Thanh Hoa to study the creation of such a tax in urban areas.

In 2018 the ministry had proposed taxing properties of high-income people, but it attracted public disapprobation, with many warning poor people could get hurt and the rich might not be affected much.

In 2017 the government had considered a tax on housing units in HCMC but again faced opposition.

Most experts that VnExpress spoke to agreed that a property tax is needed to stop the surge in prices in recent years, but developers are concerned about the negative impact on the market.

Dang Hung Vo, a former Deputy Minister of Natural Resources And Environment, said the current taxes and fees on real estate are too low and a new property tax is needed, but warned that people with many properties would try to delay its imposition.

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