Congress voted to pass tax laws for non-agricultural land use. Accordingly, the Code provisions will not increase taxes but the tax rate for land exceeding the limit compared to the previous draft.

The house is not taxed most delegates agreed, the explanation of the Standing Committee. In fact, unstable economy, people's life difficult, the housing tax will apply to the psychological impact and increase their financial obligations. In addition, many countries have developed economies have not brought home the taxable area. The goal of tax apply for housing is contributing to limit speculation, but in reality, the value attached to housing and land values in essence, is basically speculation.

National Assembly Standing Committee also explained that if the tax applies to cases where second home owners from more factors will arise unfair. In fact, there are cases where people have a home but that value many times larger than the total value of the two houses, and even third home, especially in the urban than in rural housing.

Notably, the bill passed today is the tax rate for the area in excess of quota shall be increased compared with the first draft National Assembly session. The tax rate for land area in excess of not more than three times the limit was raised from 0.06% to 0.07%, exceed the area limit of 3 times from 0.1% to 0.15%, land improper use, not used as prescribed also increased from 0.1% to 0.15%. As for land reclamation, accounting for 0.15% to 0.2%.

According to the National Assembly Standing Committee, this amendment increases to contribute along with other policies such as taxation of personal income tax, corporate income tax and other measures to limit land speculation.

Tax Law for non-agricultural land use will be effective from 1/1/2012.

Source: VnExpress