Finance Ministry Considers Additional Tax for Ownership of Multiple Houses

03.11.2016

The Ministry of Finance is proposing a policy to pay additional tax for owners of more than one house. The ministry has tasked its tax policy department with developing the plan, though it is unlikely to be implemented before 2020. Analysts have stated that homeowners should pay tax rates progressively, increasing on the second and any subsequent homes. Currently the state only gets a modest amount from its land use tax, which they say is not enough to cover expenses that maintain working public amenities.

Tax authorities have set a land use tax of 0.03-0.07 percent based on government mandated property prices while other countries levy a rate of 1 to 1.5 percent on the property’s market price. The taxing of multiple houses will be included in the Law on Asset Taxes to regulate national assets, as well as to increase the state budget. In addition to increasing government collections, the move is aimed to prevent real estate speculation.

Source: Vientam-Briefing

Photo: CBR Investment AG