According to the provisions of law, enterprises building social houses are exempt from land use levy; exemption, reduction of value added tax, corporate income tax … However, in essence enterprises are not entitled to these incentives.
The incentives flow into the pockets of the people
Housing Law, Decree No. 100/2015 / ND-CP stipulates that enterprises providing social housing for low-income urban residents and industrial park workers are entitled to a series of incentives, including:
To be exempt from land use levies and land rents for the whole area of land already assigned or leased by the State, including the land fund for the construction of commercial business works approved by the competent agency within the scope of the project on construction of social houses.
Exemption from or reduction of value added tax and enterprise income tax (in case of investment in the construction of social houses for lease only, they shall enjoy a 70% reduction of the value added tax and enterprise income tax according to current tax law provisions on social houses.
Supported by the provincial People’s Committee all or part of the cost of investment in the construction of technical infrastructure within the project area (in case of investment in the construction of social houses for lease only, the cost of investment in construction of technical infrastructure).
Housing Law, Decree 100 provides quite a lot of incentives for investors social housing projects
The preferential policy is so much, however, according to Mr. Vu Van Phan – Deputy Director of the Housing Management and Real Estate Market (Ministry of Construction) – businesses are not actually enjoy these incentives .
Specifically, Phan analyzes: the state exempts land use for businesses but businesses are not allowed to add this amount to the price of social housing. So in essence, the state exempted land for the people, but the business is nothing.
Similarly, the corporate social housing is exempted from VAT, income tax but this deduction is also deducted from the price, so basically, businesses are not beneficial.
With the policies of the provincial People’s Committee to support the construction of technical infrastructure, the problem lies in the local interest, the budget is abundant, the new project is entitled. And no local money, no interest is not.
“Many people are saying that the business is enjoying a lot of incentives, yes, it’s a lot of things, but that’s the indirect one, and the direct one is the buyer,” Phan said.
Preferential package is only VND2,500 billion, only for people to borrow
Since the end of the 30 trillion dong support package, the National Assembly has agreed to provide the Social Policy Bank with VND2,000 billion to implement the social housing program.
However, in VND2,000 billion, VND840 billion is allocated to the housing support program for people with meritorious services to the revolution. Only VND1,160 billion is allocated to the program of social housing for low income earners. town and industrial park workers.
“Some localities have reduced the amount of money for the housing program for people with merit, which is VND 104 billion, so the Government is now submitting to the Standing Committee of the National Assembly adjusting the package of VND2,000 billion for housing program to VND 1,264 billion, “said Phan.
However, according to Mr. Phan, the support package of VND1,264 billion is just as salt sea drop in terms of scale, it is equivalent to 1/25 package VND30,000 billion before.
“According to the regulation, the Social Policy Bank will mobilize another 50%, so the total loan package will be around VND2,500 billion, but this package is only for people borrowing, businesses can not borrow. “he said.
For resolution, Mr. Phan said the Ministry of Construction has submitted to the Prime Minister, allowing VND500 billion (in VND1.264 billion) to commercial banks to lend in the package of VND30,000 billion in the past.
“To offset the interest rate is only VND17 trillion or half of the package of 30 trillion dong, but if we leave the Bank for Social Policies, only VND2.5 trillion,” he said. for
It is known that the Social Policy Bank has not received the government’s 1.160 billion VND to provide loans for social housing.
Commenting on this, Phan said: “The socio-economic conditions are still very difficult, the state budget is very difficult, many programs are funded by the budget, our program is only a part.”
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