Building tax tools for healthy development of real estate market

Faced with the current situation of rising housing prices and a shortage of affordable housing, the Prime Minister requested ministries and sectors to urgently research and develop a reasonable tax policy to prevent speculative behavior. At the same time, use credit tools to control and direct capital flows, determined not to let the market develop in an unbalanced way, affecting social security.

Frankly identify market paradoxes and bottlenecks

Speaking at the meeting with the participation of ministries, branches, localities, and representatives of corporations and commercial banks, Prime Minister Pham Minh Chinh pointed out the persistent problems of the real estate market. The Prime Minister acknowledged that some current legal regulations, mechanisms and policies are still not suitable to reality, creating "institutional obstacles" that slow down the progress of project implementation, especially social housing.

Build appropriate tax policies to prevent speculative behavior and inflation of housing and real estate prices.

One of the biggest paradoxes is the serious imbalance between supply and demand. While the supply of affordable commercial housing and social housing is still very limited, housing prices in large cities are still far beyond the affordability of the majority of people. There is still a situation in the market where investors push up prices, create "virtual prices", and disrupt information for profit. In addition, the activities of real estate trading floors are still inconsistent, potentially risky and do not ensure transparency.

The Prime Minister said that the target of completing 100,000 social housing units in 2025 is a big challenge, in the context that there are still 8 localities at risk of having difficulty completing the target. Although in the first 9 months of the year, 73 new projects with a scale of 57,815 apartments were started, to achieve the overall goal of the "Project to build at least 1 million social housing units for low-income people and industrial park workers in the period of 2021-2030", there must be breakthrough solutions and more drastic actions.

Tighten speculation, remove development "bottlenecks"

To stabilize the market, the Prime Minister requested the synchronous implementation of two strategic solutions. First, using financial tools to control speculation. The Prime Minister emphasized the urgent need to build a reasonable tax policy to prevent the continuous buying and selling of real estate to inflate prices. This is considered a necessary economic barrier to limit investors who do not have real housing needs.

At the same time, the Prime Minister directed the State Bank to have appropriate credit policies, on the one hand, increasing the disbursement of the 145,000 billion VND package for social housing projects and home buyers, on the other hand, strictly controlling the flow of credit capital into speculative segments. The spirit is to direct the economy's cash flow into production and business activities and meet the practical needs of the people.

The Prime Minister also requested to focus on removing obstacles to unblock the supply. The Prime Minister requested the Ministry of Construction to preside over and coordinate with relevant agencies to quickly complete the institution and soon submit the Decree on the National Housing Fund. Localities must be proactive in planning, arranging clean land funds and quickly resolving administrative procedures for businesses. Rejecting the view that "there are provinces with no need for social housing", the Prime Minister affirmed that "the problem is that the way of doing things must be appropriate". At the same time, he requested that projects must be built in places with synchronous infrastructure, not pushing people to remote areas.

To solve the resource problem, the Prime Minister directed the need to diversify capital channels, from the budget, credit, bonds to private capital. The Prime Minister called on businesses to share responsibility by cutting costs to lower product prices. With the firm view that "not being able to implement due to institutional problems", the Prime Minister pledged that the Government will synthesize issues beyond its authority, report to the National Assembly for consideration, and issue a Resolution at the next session to promptly resolve them.

Source: https://daibieunhandan.vn/xay-dung-cong-cu-thue-de-phat-trien-lanh-manh-thi-truong-bat-dong-san-10390067.html