Residential buildings in the capital's Trung Hoa-Nhan Chinh Ward. Land use rights tax collections in the first nine months of the year met only 45 per cent of target, with 62 real estate projects in the city failing to pay their dues. — VNA/VNS Photo Bui Tuong

HA NOI (Biz Hub)— Tax debts in the property sector here in the first nine months of 2014 reached VND4 trillion (US$190.4 million), figures from the city taxation department show.

The figures also revealed that land use rights tax collections met only 45 per cent of target, with 62 real estate projects in the city failing to pay for the taxes.

Le Thi Kim Giao, deputy head of Hoang Mai District's taxation department told online newspaper infonnet that property enterprises have blamed the downturn in the real estate market on financial difficulties caused by a lack of access to loans.

Hoang Mai is one of the city's inner districts with a large number of property projects. However, up to 10 projects in the district have not paid for land use rights taxes estimated to be worth VND881 billion ($41.9 million).

In the context of the difficult economic situation in and outside the country, the Government has issued several timely policies to support real estate companies.

Some companies in the sector were allowed to extend the deadline for payment of land use rights taxes, but some completed projects have yet to fulfill their financial duty to the State. These include Palm Garden Viet Hung, Berriver 390 Nguyen Van Cu and the HH5 Viet Hung Urban Area. Each enterprise has its own reason for delayed tax payment.

The online newspaper quoted Nguyen Tuan Anh, deputy general director of the Housing and Urban Development Corporation (HUD), as saying his company paid VND400 billion ($19 million) to the State budget.

However, the company had to complete some unfinished projects which required a deadline extension for tax payments. — VNS