Under the proposed law, there are two options: imposing tax on houses with construction value of either 30,400 USD or 43,500 USD. If the first option is applied, the finance ministry will be able to collect property tax of over 1 billion USD to 1.4 billion USD per year.
With the second option, the tax collection is estimated to vary from 987 million USD to 1.3 billion USD. The proposed tax rate is 0.3 or 0.4 per cent annually, with only the surplus construction value above the proposed threshold to be taxed. According to the Ministry's Tax Policy Department, taxing houses and trade-service construction work will impact enterprises' production and business. The draft is scheduled to be submitted to National Assembly for feedback in 2020.
