VietNamNet Bridge - National Assembly committees all want to tax second and subsequent houses  purchased to restrict speculation, but it is still unclear when the tax would be applied.

Nguyen Duc Kien, deputy chair of NA’s Economics Committee, said many deputies supported the idea, but the National Assembly was still thinking about when to apply the tax.

Kien said it would depend on market conditions and other factors. A tax policy, even if reasonable, will fail if it is implemented when conditions are not favorable. Meanwhile, the taxation on second and subsequent houses is expected to have a big impact on the real estate market.

“The economics committee, after considering possible measures and impact on the environment, has decided that it is necessary to continue keeping a close watch over the market performance in 2017 before making a decision,” he said. 

National Assembly committees all want to tax second and subsequent houses  purchased to restrict speculation, but it is still unclear when the tax would be applied.

The taxation may be put forward for a detailed discussion in 2018, if the economy gets better. According to Kien, the policy may receive approval by May 2018.

“The economic performance in 2017 will determine the next steps for 2018,” Kien said.

Nghiem Quang Cuong, director of Cuong Linh Tax Agent, said that taxing individuals’ assets is a reasonable policy because this allows the state to increase revenue from tax collection, and helps ease speculation. 

However, he said it is necessary to consider technical issues thoroughly in order to avoid dodging the law.

“Some policies were created even though research was not carried out carefully. As a result, they need more amendments. Tax policies are among them,” he commented.

To ensure fairness for asset owners, Cuong thinks it would be better to tax houses based on the land areas individuals have, not on the number of houses.

“An individual with one villa which covers thousands of square meters must be taxed higher than the individual with many small houses with the total area of hundreds of square meters only,” he explained.

Cuong said that all kinds of assets should be taxed as well. 

“There are the properties which have higher value than houses, such as yachts and helicopters,” he said. “In principle, higher tax rates must be imposed on more valuable assets,” he said.

Vy Thi Bien from Lang Son province, agreeing with Cuong, said there are many different kinds of assets, including bank deposits which bring monthly, quarterly and annual profits.

About the real estate market performance in 2017, Ho Bao Hung from Savills Hanoi said this will depend on macroeconomic factors, especially the credit policy.

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