Hanoi (VNA) – Vietnam will study the imposition of a tax on homeowners andincrease taxes on land to prevent speculation and increase the land-useefficiency, as part of a comprehensive tax reform strategy for 2030 which wasapproved on April 23.

This tax wasalso mentioned in the Finance Strategy to 2030, approved in March.

The proposalabout the imposition of an asset tax on second homes emerged recently overworries that real estate speculation is causing the market to overheat. Inresponse to this, the Ministry of Finance denied rumours that it was developinga draft law on property assets, as experts said that it was not the righttime as it might hurt the property market and the COVID-19-hit economy.

Under thetax reform strategy, tax on agricultural land would continue to be exempt until2025 to promote agricultural and rural development. For the tax onnon-agricultural land, an increase would be put into consideration.

Taxes onhomes would also be studied to promote efficiency in using lands and houses,prevent speculation and ensure reasonable revenue to the budget.

Anotherspotlight of the tax reform strategy was giving incentives in corporate incometax to small and micro-sized enterprises.

Corporateincome tax exemption and reduction incentives would be reviewed and those nolonger consistent with the development and integration requirements would beamended or removed.

The taxpolicies would also aim to attract foreign investment with a focus on qualityrather than quantity.

The personalincome tax would also be reviewed for amendments of tax rates to ensureappropriateness to taxable income and the accordance with the nature of eachtype of income.

Regardingthe value-added tax, a roadmap for increases in value-added tax would bestudied. The regulation related to tax reduction and tax refund would bereviewed to ensure transparency and consistency with relevant regulations.

A roadmap toincrease the special consumption tax on tobacco, beer and alcohol would also beput into consideration.

For exportand import tax, the number of tax rates would be reduced to simplify theimport-export tariffs, from currently 32 to 25 in 2025 and 20 in 2030. Inaddition, the import and export tax policies would also promote exports,increase domestic added value and limit the export of raw materials andresources.

Appropriatetax incentives would be raised to promote the development of spearheadindustries, and part-supply industries and prioritise sectors to ensurecompliance with the country’s socio-economic development orientations in eachperiod.

The taxpolicies on natural resources and environmental protection would also bereviewed under the reform strategy.

In the 2021-2025period, the tax policies would focus on providing support to enterprises andresidents to overcome difficulties and recover business and production afterthe COVID-19 pandemic.

The strategyaimed to build a modern, streamlined, transparent and efficient tax managementsystem together with the application of information technology andadministrative procedures simplification to reduce compliance costs for enterprisesand residents./.