What can we learn from the increase in land tax?

The first issue to address behind the impressive tax revenue from real estate is the fact that the removal of legal obstacles for projects has actually yielded results. Why do we say "actually"? Because over the past few years, we have spent a lot of time, effort, conferences, meetings, and announced solutions for various projects. However, the budget revenue from real estate and the number of projects brought to market have not been commensurate. Currently, the results are clearly demonstrated by the increase in land use fees; the increase in revenue from production and business activities related to real estate due to accelerated project progress; and the specific number of houses and land plots granted land use certificates. This means that the removal of obstacles for hundreds, even thousands, of projects nationwide, as mentioned above, has had tangible results, not just achievements on paper.

Secondly, along with the increase in revenue, tens of thousands of people have received their rightful benefits after years of having their land ownership certificates (pink books) suspended. This is clearly demonstrated in Ho Chi Minh City. In the past six months, since the city established Task Force 5013, more than 71,000 houses have been granted land ownership certificates. People living in projects where certificates of ownership were suspended are overjoyed to have received them, while those who haven't yet received them are filled with hope that it will be their turn. Every few days or weeks, this task force announces the projects officially included in the list for certificate issuance and proceeds with the procedures for the people. The policy is implemented correctly; if the investor commits violations, the investor will bear the responsibility; and the rights of homebuyers who have fulfilled their financial obligations must be guaranteed.

Thirdly, the process and procedures for project licensing and land title issuance have been shortened, accelerating progress in all stages. This has led to an increase in the number of approved projects, the number of land titles issued, increased market supply, and increased budget revenue. More importantly, the aforementioned issues also show that the fear of responsibility and reluctance to sign documents among officials has significantly decreased compared to before. We surely remember that the public service system experienced a period of stagnation, even paralysis, due to the problem of officials shirking responsibility. Legal documents and official papers were passed from one door to another... for an entire year without being processed. It was so serious that the Government and local authorities had to intervene decisively. There were even large conferences dedicated to dissecting and resolving this issue. But now, with the number of projects resolved, the number of approved projects, the number of land titles issued, and especially the skyrocketing tax revenue, it shows that this problem has been solved.

Conversely, the increase in revenue from rising land prices and land lease fees also needs careful consideration. The reality is that after a sharp increase in land prices, many people lack the funds to convert their land to residential use or obtain land ownership certificates; the increased land lease costs for many businesses also impact their output prices, reducing their competitiveness in the current challenging economic climate.

The real estate market picture is quite clear based on the figures, and now is the time for the relevant authorities to adjust and optimize strategies to best and most effectively leverage what has proven successful, as well as to "tighten the belt" to support people and businesses in unleashing their full potential in this pivotal year of the new era.

Source: https://thanhnien.vn/thay-gi-tu-thu-thue-dat-tang-185250621220112735.htm