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Saturday, February 4, 2023

Budget collection from real estate sector slows in H2

The Saigon Times

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HCMC – Though the tax revenue from the real estate industry has exceeded the year’s goal, it has kept sliding since June.

According to General Department of Taxation data, revenue from housing and land in the year to November had accounted for 17.2% of the total tax collection, at over VND222.6 trillion, surpassing the full-year target by 36.9% and up 130.5% over the same period in 2021.

Of the total, tax collection from land use rights shot up 134.8% year-on-year to nearly VND183.7 trillion, while taxes on land rent soared 110.2% to around VND35.4 trillion.

The tax authority attributed the impressive results to the housing market being in full swing from late 2021 until the end of the first quarter of this year, coupled with the competent agencies’ efforts to collect taxes and combat tax losses in real estate transfers.

However, budget revenue from the industry has ebbed away steadily since June, with a decrease in taxes from income generated by real estate transfers and a plunge in registration fee growth.

Registration fee growth stood at 78.4% in June. It tapered off to 72% in August, then plummeted to 56.4% in the next month, and was estimated to drop to 44.9% in November.

Meanwhile, the manufacturing sector in the year through November had contributed over VND666.5 trillion to the state budget, up 108.8% against the same period last year, thanks to the fast economic recovery as the country has adapted to the new normal.

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