It reasoned that the proposal still had inadequacies as owners of several small houses or plots of land would have to pay heavy tax while owners of a large, expensive house would be exempt from the tax.

Meanwhile, legal loopholes would enable homeowners and organizations to dodge the tax by registering their properties in other people’s names.

The tax proposal might also result in a plunge in housing demand and supply in the city, the ministry said, adding that not many countries chose to tax people who own more than one house.

Earlier, the HCMC government drafted a resolution that would replace Resolution 54 of the National Assembly on a special mechanism for the city, in which it suggested slapping a high property tax on people having more than one house to prevent housing speculation.