Real estate businesses have not enjoyed many fiscal and monetary policies.

Enterprises have not enjoyed the 2% VAT reduction policy for 2 years.

On January 9, news from the Ho Chi Minh City Real Estate Association (HoREA) said that it had just sent a report to the Ho Chi Minh City National Assembly Delegation on fiscal and monetary policies to support the socio-economic recovery and development program.

Real estate businesses have not yet enjoyed the 2% reduction in value added tax rates in 2022-2023.

According to HoREA, regarding tax exemption and reduction policies, Resolution 43/2022/QH15, Resolution 101/2023/QH15, Resolution 110/2023/QH15 and Decree 15/2022/ND-CP, Decree 44/2023/ND-CP, Decree 94/2023/ND-CP allow "a 2% reduction in value added tax rates in 2022, applicable to groups of goods and services currently applying a value added tax rate of 10% (to 8%)".

However, because it does not apply to some production and business sectors, including real estate businesses, real estate businesses have not enjoyed the policy of reducing 2% of value added tax rate in 2022-2023.

The Association found that Resolution 43/2022/QH15 and Decree 15/2022/ND-CP "allowing deductions when determining taxable income for corporate income tax on support and sponsorship expenses of enterprises and organizations for Covid-19 prevention and control activities in Vietnam for the 2022 tax period" have mobilized social resources.

Among them, there are real estate businesses that voluntarily contribute finance (up to thousands of billions of VND), human resources, assets, and equipment to fight the epidemic.

According to the Association, Resolution 43/2022/QH15 of the National Assembly and Resolution 11/NQ-CP of the Government have policies to support enterprises, cooperatives, and business households with "interest rate support (2%/year) up to 40 trillion VND through the system of commercial banks for a number of important industries and fields, enterprises, cooperatives, and business households with the ability to repay debts, with the ability to recover; loans for renovating old apartments, building social housing, houses for workers to buy, rent, and hire-purchase".

But the implementation results so far are too low, only disbursed about 875 billion VND, only reaching a rate of about 2.3% due to limitations and "inadequacies".

Enterprises, cooperatives, and business households affected by the Covid-19 pandemic have been exhausted, making it difficult to prove their "ability to repay debts and ability to recover".

In addition, businesses are afraid of being "post-audited" after receiving a 2% interest rate reduction, which will affect production and business activities.

The policy of “2% interest rate reduction” applied to “loans for renovating old apartments, building social housing, houses for workers to buy, rent and hire-purchase” with the disbursement results (above), has shown that this policy cannot be implemented for “loans for renovating old apartments, building social housing, houses for workers to buy, rent and hire-purchase”.

Because almost all projects of "renovating old apartments, building social housing, houses for workers to buy, rent and hire-purchase" are "stuck" due to "legal problems".

In addition, the 2% interest rate reduction policy does not apply to some production and business sectors, including real estate businesses, so the beneficiaries of this policy are narrowed.

Slow interest rate reduction causes difficulties for many businesses

Regarding the policy of supporting housing rent for workers, HoREA assessed that this is a very humane and practical policy that directly supports workers facing difficulties and lacking income, but the implementation is a bit slow and almost does not apply to workers renting houses but not working in industrial parks, export processing zones, or key economic zones.

The loan policy to support individuals to buy or rent social housing has not been implemented significantly in general due to the lack of social housing resources.

The landlords are providing accommodation for millions of workers nationwide who have not yet received support policies under Resolution 43 of the National Assembly. In Ho Chi Minh City alone, there are more than 60,000 landlords with more than 600,000 rooms for rent.

Regarding the loan policy to support individuals to buy or rent social housing, it has not been implemented significantly due to the lack of social housing sources.

In Ho Chi Minh City alone, the Social Policy Bank said that in 2022 and 2023, it only disbursed 35.7 billion VND to buy and rent-purchase social housing. If the average loan rate is 600 million VND, it is only equivalent to 63 social housing units.

In addition, HoREA said that the slow decrease in interest rates has caused many businesses to face difficulties. The government requires “credit institutions to continue to reduce operating costs to strive to reduce lending interest rates by about 0.5% - 1% in 2022 and 2023, especially for priority sectors”.

However, the interest rate reduction has been implemented quite slowly by commercial banks. According to HoREA's observations, banks have only reduced interest rates for new loans by about 1.5-2% compared to early 2023, while old loans still bear quite high interest rates.

Regarding the directive to “continue restructuring debt repayment terms and maintain the debt group”, it was not until 16 months after the National Assembly issued Resolution 43/2022/QH15 that the State Bank issued Circular 02/2023/TT-NHNN “regulating the restructuring of debt repayment terms and maintaining the debt group by credit institutions and foreign bank branches to support customers in difficulty”.

"If issued earlier in 2022, it will have a very positive impact on the economy, businesses, people and investors," HoREA emphasized.

Source: https://www.nguoiduatin.vn/doanh-nghiep-bat-dong-san-chua-duoc-huong-nhieu-chinh-sach-tai-khoa-tien-te-204644388.htm