The Ministry of Finance responds to the proposal to reduce land use fees when converting garden land to residential land.

Responding to a petition from Hanoi voters regarding a reduction in land use fees for households and individuals converting land use from garden land or agricultural land inherited from ancestors to residential land, the Ministry of Finance stated that current land laws clearly stipulate the principles for collecting land use fees. Furthermore, to alleviate the financial burden on citizens, the Ministry is finalizing a draft Government Resolution to address any obstacles arising during implementation.

Illustrative photo: Tuan Anh/TTXVN

The Ministry of Finance stated that, according to the regulations in the 2024 Land Law, there are provisions regarding the payment of land use fees when changing the purpose of land use from agricultural land to other types of land.

Accordingly, “1. When changing the land use purpose as stipulated in points b, c, d, e, f and g of Clause 1, Article 121 of this Law, the land user must pay land use fees and land rent according to the following regulations: a) Pay land use fees and land rent in a lump sum for the entire lease period equal to the difference between the land use fees and land rent of the land type after changing the land use purpose and the land use fees and land rent of the land type before changing the land use purpose for the remaining land use period."

Article 8 of Decree No. 103/2024/ND-CP stipulates the calculation of land use fees when changing land use purposes for households and individuals according to the principles specified in Clause 1, Article 156 of the 2024 Land Law. Accordingly, for households and individuals changing the purpose of land use from agricultural land to residential land, the land use fee is calculated as the difference between the land use fee based on residential land prices minus the land use fee based on agricultural land prices at the time the decision to permit the change of land use purpose is issued.

Recently, the Ministry of Finance announced that it had received suggestions and proposals from localities, as well as media reports, regarding the fact that land prices in some localities are unusually high compared to the old land price list. Residential land prices are many times higher than agricultural land prices. Therefore, when the State allows the conversion of land use from agricultural land to residential land, households have to pay significantly higher land use fees than before, and there have been proposals to reduce the land use fee and financial obligations for citizens.

In response to the aforementioned suggestions and feedback, while awaiting amendments to the 2024 Land Law, and in order to support households and individuals in reducing their financial obligations when converting land use from agricultural land to residential land, the Ministry of Finance is finalizing a draft Government Resolution on resolving and addressing obstacles related to land use fees for households and individuals when converting land use from agricultural land to residential land (applicable to garden land, pond land, agricultural land within the same plot of land with a house or residential land in a residential area when land use rights are recognized but not recognized as residential land) to report to competent authorities for consideration and decision.

Source: https://baotintuc.vn/kinh-te/bo-tai-chinh-tra-loi-kien-nghi-giam-tien-su-dung-dat-khi-chuyen-dat-vuon-sang-dat-o-20251215113400048.htm