HCM City real estate tax revenue jumps 50% (Photo: VNA)

As many as 75% of revenue collected was from personal income tax related to real estate transfers and the remaining 25% from real estate registration fees, according to the HCM City Tax Department.

Other land-related revenue, including land use fees and taxes, has risen by 58% to 10.51 trillion VND in the period, according to the department.

The department has attributed the growth in revenue to the proactive involvement of residents in real estate transactions ahead of new legislation effective on August 1, and a recent decision by HCM City authorities to raise land prices.

Despite this increase, overall revenue collection has only achieved 26% of the annual target, with total land-related revenue exceeding 17 trillion VND, up 56% year-on-year.

Experts expect that budget revenue from real estate may continue to increase in the fourth quarter due to the implementation of the higher land price framework.

However, projections for the entirety of 2024 may not be fulfilled due to the ongoing sluggish market and delays in ongoing projects stemming from legal issues.

HCM City authorities have recently raised land prices significantly, with residential land in central districts now valued at over 687 million VND (27,000 USD) per square metre, while prices in the outskirts have reached 2.3 million VND, increases of four to 38 times.

The new rates, effective from October 31 until 2025, will determine land compensation, taxes, and administrative fees, with the objective of enhancing State tax revenue.

The highest land prices are recorded on Dong Khoi, Le Loi, and Nguyen Hue streets in District 1, whereas Can Gio district has the lowest rates.

District 4 will experience reductions of 19-35%, while Thu Duc city and adjacent areas will see increases ranging from 1.5 to 11 times.

Agricultural land prices are set between 400,000 VND and 810,000 VND per square metre, while land within technology parks will rise to 12.2 million VND for manufacturing and 15.1 million VND for select streets in Thu Duc city.

The city authorities are committed to ensuring transparency and fairness in land pricing and compensation, addressing existing disparities that have contributed to tax evasion and delays in real estate development./.