According to his oppinion, the reason for the tax adjustment of the Ministry of Finance is not satisfactory.
Increasing taxes will make housing prices rise sharply. In Vietnam, 70% of the real estate market is housing, which is one of four essential needs of the population so
higher taxes will cause the housing market to suffer terrible and increasingly dark.
Nguyen Manh Ha stressed that in the past, people were only subjected to registration tax (0.5%) and personal income tax (2%). If VAT is applied to land use rights, taxes will increase by 12% so total tax will increase to 15%.
Bui Ngoc Tuan, Deputy General Director of Deloitte Vietnam Tax Consultancy Services also shared the same view at the issue.
He stated that the application of VAT on land use rights will affect other aspects of socio-economic because real estate transactions creating a flow of money and finance account for a large proportion of credit and consumption for the banking system and credit in Vietnam.
In fact, VAT taxation on land use rights is the direct hit on the end consumers and ignores the real estate business in the commercial form. This will affect the decision of the buyer's trading and then cause the market to pause as well as lead to a series of implications for the relevant sectors.
