Dr. Vu Dinh Anh: "Property tax is a common tax in the world"

	Revising Law on Import and Export Duties: Amending the provisions on the tax rate bracket
	Facilitate enterprises in the determination of taxable value
	Proposing to build property tax law to limit speculation and waste

Dr. Vu Dinh Anh.

Could you explain the nature of the property tax?

First of all, property tax is in the tax system and its taxable subjects are property. The property here is understood as materials and goods used for production and consumption. However, the property tax rate depends on the socio-economic conditions of each country and are not similar.

The taxation and the taxation process also depend on those conditions. I assert that the first property tax is a very common tax in the world and in the tax system. In Vietnam, this tax type has been included in the Comprehensive Tax Reform Program until 2020.

In the draft, Ministry of Finance stipulates that the tax-free threshold on housing is VND 700 million. In rural areas, it is not a big problem, but in urban areas such as Hanoi and Ho Chi Minh City, the social housing of low-income people is already worth that. In your opinion, is this rate reasonable ?

I think it would take a lot of time to analyse the reason why it is VND 700 million not VND 600 million or VND 1 billion or even VND 7 billion. There are many ways to argue, each way has a different basis.

Therefore, the basis of the tax rate provided by the Drafting agency must be persuasive. And the agency must explain that basis.

Tax is a matter not only related to economics, finance, society, but also to other fields. Therefore, simple arguments may create problems.

It is said that now people have to pay the land use tax, if they have to pay the property tax, whether there is a tax overlapping? What do you think about this?

First of all, the concept of tax overlapping also needs to be clarified. As I assert above, the property tax this time is put in the comprehensive tax system reform, so the contents of this property tax will be balanced against other taxes in the reform, thus direct tax overlapping will not occur.

Secondly, when the property tax is issued, land use fee must be amended in the principle of creating uniformity to overcome the current inadequacies. I also hope that we can offer solutions to shortcomings in the reality related to current land fees.

But it must be understood that these are two different concepts. The land use fees may be amended, and non-agricultural land use tax will be abolished after the property tax law is issued and land is considered as a property.

In your opinion, how is the tax structuring to ensure the budget balance is carried out so that people are not burdened?

First of all, I want to confirm once again that the amendments made by the Ministry of Finance are in the roadmap and Comprehensive Tax Reform Program until 2020 with specific phases and plans.

The problem is that there should be a proper way of dissemination, the Drafting agency should stand on the taxable subjects to explain and give persuasive arguments to avoid social problems.

Property Tax on cars valued at more than VND 1.5 billion should be considered VCN - In the draft Law on property tax which was newly announced, the Ministry of Finance ...

In addition, I said that people's desire is the use of tax revenue in a reasonable and transparent manner. People will only be willing to pay taxes if they understand that the tax revenues is used reasonably and economically. It is also necessary to demonstrate this when making an intention for tax amendments.

Thank you Sir!