To increase budget revenues, limit speculation and vacant housing in projects, the People’s Committee of Ho Chi Minh City recommends taxing second or higher real estate.
Taxing the second home, land or more
The Ho Chi Minh City People’s Committee has just submitted to the government the formulation of a resolution on probation mechanisms and policies to create motivation for the city’s development. This resolution supersedes Resolution No. 54/2017/QH14 (Resolution 54).
After 5 years of implementation of Resolution 54, Ho Chi Minh City has achieved some results, but essentially still has not achieved the stated goals, especially mechanisms and policies for the city to mobilize resources while space is still very large.
Based on the advice of many organizations, ministries, experts and related bodies, the People’s Committee of Ho Chi Minh City has proposed the content of recommendations to be included in the draft resolution replacing resolution 54.
Ho Chi Minh City wants to test second or more property tax collections to limit speculation.
In terms of investment management, Ho Chi Minh City wants to have policies to remove “bottlenecks” related to investment procedures; land issue – lease mechanism; Select investors with projects for urban beautification and renovation of old apartments.
An important content to generate revenue for the budget and increase Ho Chi Minh City’s autonomy in allocating local budget revenue is also recommended as a budget issue.
Specifically, Ho Chi Minh City is proposing to have the right to decide on additional tax policies for people’s land use rights and title to the land of the second or more real estate.
According to the People’s Committee of Ho Chi Minh City, the purpose of this regulation is to test property tax policies as a practical basis for developing general policies in the future. At the same time, ensuring stable and sustainable revenues for the local budget, limiting speculation and abandoning houses and land in ongoing real estate projects, wasting social resources.
According to the decision of the National Assembly, Ho Chi Minh City will enjoy the budget in 2022 according to the regulation rate of 21%. The city proposed to keep this rate unchanged until the end of 2025, while not factoring it into the adjustment of tax revenues and levies applied in the pilot application, such as a second property tax or new fees and levies.
According to the People’s Committee of Ho Chi Minh City, the above arrangement is in line with international practice when “property tax is only used to invest in improving the well-being of people in the place where tax revenue is generated”.
Compensation for the right type of land acquired
In the field of urban management and environmental resources, in addition to the proposal to maintain the regulation to decide to change the purpose of using rice land over 10 hectares, Ho Chi Minh City proposed to add some content, such as:
Decentralization for Ho Chi Minh City must be approved for local adjustment of urban planning within the overall urban planning approved by the Prime Minister; create detailed planning tasks and projects while collecting community comments to reduce time;
Decentralization for Ho Chi Minh City may decide content related to: Construction of commercial housing, social housing, resettlement houses, treatment of old apartments, houses on and along canals… as these are major bottlenecks in ongoing investment projects;
Fully decentralize HCMC in formulating and issuing land price adjustment coefficients for calculating land use fees for all parcels and parcels;
Allow Ho Chi Minh City to test the “proportional land” land clearance compensation mechanism to ensure flexibility according to the requirements of each project and the voluntariness of land users;
Let Ho Chi Minh City carry out the separation of compensation, support, resettlement and site clearance in a public investment project, independent of group B projects in the area, to effectively use public investment capital and avoid the situation of “capital waiting for the project”, capital pool due to lack of space.
@ Vietnam net
