Deputies turned off by housing tax
“After
careful consideration and discussions over opinions from National Assembly
deputies and the public, the Standing Committee agrees that housing taxes
should not be imposed now,” said the National Assembly’s vice chairman Nguyen
Duc Kien.
Under the
National Assembly’s draft law on housing and land tax, the law will focus on
imposing taxes on housing and non-agricultural land. The taxes will enhance the
government’s management of the real estate market, encourage people to save and
effectively invest in land, reduce speculation and help Vietnam reach
international housing and legal standards.
A
Standing Committee report said the public did not agree with property taxes,
because it would financially burden them while the country’s economy remained
unstable. “During our meetings with local people, they said they would be very
happy if their houses are not taxed,” said Nguyen Duy Huu, a deputy from Dak
Lak province.
“One of
the targets of housing and land tax is to limit housing speculation. But, in
fact the value of land and housing is closely linked with the value of land and
speculation has been focused on land. Thus, limiting speculation means that
land must be managed, not housing on land. It will be hard to apply a housing
tax now, due to the country’s insufficient different conditions,” the report
said.
For
example, chairman of the National Assembly’s Finance and Budget Committee Phung
Quoc Hien said houses in Hanoi were sold for far higher prices than in Lai Chau
province, just thanks to its better location. “Thus the law needed to focus on
land taxes only,” Hien said.
However,
some National Assembly deputies did not agreed with the decision. Vu Hong Anh,
a deputy from Hanoi, said housing should be exposed to tax. He said at present,
the housing and land market in most localities, especially big cities like
Hanoi, Ho Chi Minh City, Haiphong and Danang was strongly developing, with
assorted high-end housing, offices and villas.
Moreover,
the country’s Housing Law issued in 2005 and Real Estate Business Law issued in
2006 have enabled the public and economic sectors to develop housing for lease
and sale. This has led to land and housing speculation which prevents low-income
people to buy housing and land.
“So I
think that there must be tools to manage the country’s housing market so that
low-income people can buy housing. One of the tools must be tax, which proves
to be effective in managing the housing market,” Anh said.
Sharing
Anh’s view, deputy Tran Du Lich from Ho Chi Minh City said: “During a short
trip from Hanoi’s Noi Bai international airport to Hanoi’s centre, many
unoccupied villas can be seen, while so many people in the country are not able
to own a home.”
According
to him, it was necessary to apply a housing tax. “But, the law needs to impose
taxes on those having many houses and land. That is a way to manage the
country’s real estate market,” Lich said.
“All land
nationwide needs to be re-examined. Otherwise, the law would be difficult to be
approved,” he said.
Source: VNeconomynews
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