Hanoi to put 10% tax on abandoned villas
28-08-2012
 Hanoi tightens control over villas |
According to the Hanoi Department of Construction, as of June the city had about 655 villas and 574 linked houses, which were completed but unused.
The villas that have been abandoned for less than three months will be subject to a 5% tax on the contract value, while a 10% tax will be applied to those abandoned for over that term. The Ministry of Finance also proposed fining the investors VND10-20 million (USD478-957) per villa.
However, experts said this could prove difficult since the government has not yet clearly defined what constitutes abandonment.
In addition a progressive tax system has been suggested for those households that buy more than one property. Many have suggested that the properties are considered assets of the investors.
Others claim, however, that these abandoned villas are proof that the investors are having difficulties and more taxes will simply add to their difficulties in tough economic times.
The Prime Minister has ordered the local authorities to carry out an inspection on the matter, and requested that investors comply by putting the villas to use by the third quarter, suggesting that they may be forced to sell them to people with real demand.
