Dr. Mohsen Tabatabaei Mozd Abadi

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Dr. Mohsen Tabatabaei Mozd Abadi

Challenges of implementing tax law on vacant houses

Saturday, April 23, 2016 1:29 PM
economy
شماره خبر: 197803

Regarding the importance of housing sector at micro and macro national economy, the issue of vacant houses is one of the problems which this important economic sector always faces with it.

ILNA news agency: Regarding the issue of collecting tax on vacant houses, Seyyed Mohsen Tabatabaei Mozdabadi, the secretary of IUESA said, there are about 20 million typical houses in the country of which, 63 percent are civilians and 27% leased, according to the statistics of 2011 population and housing census.

From the total gross costs in the country during 2011, 2012 and 2013, 30.6, 32.9 and 34.1 percent is related to the costs of housing and energy. Statistics in Tehran is 44%, 50.4% and 51.6% during this period. Only 1.5% to 2% of this sector’s costs are related to energy, electricity, gas and other fuels and rest of them is for housing and subsidiary services in housing. In 2011, the share of housing from urban family costs is 47.26% in Tehran annually. These statistics show high share of housing in family consumption basket.

The share of housing sector, building and services of residential units of total value added in the national economy of the country during 2011, 2012 was 14.2% and 15.7%.

The share of this sector of gross domestic product (at market prices) during the mentioned years is 14.1% and 15.5%, the share of this sector of gross domestic product except oil (at market prices) is 17.4% and 17.7% and the share of this sector from national revenues during mentioned years was 16.1 and 18% while the share of 33.6% of industry in total employment of the country is about 15% in housing sector and subsidiary services for housing.

 Mentioned statistics regarding product, added value and also employment in housing sector in housing sector, more than 300 industrial fields are related to it, shows the importance of this sector in macroeconomic dimensions.

Income power and the purchasing power of applicants should also be considered for organizing housing market. If this volume of vacant unit is supplied to the market, but due to recession in the country, enough purchasing power does not exist for it, it will avoid accomplishing transactions.

Due to the recession in country, particularly in housing transactions, it is possible that some house builders did not have enough opportunity to sell their units and finished expense of housing construction will be increased for them by paying tax on vacant houses.

 

 

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