The information was given by Deputy Minister of Finance Le Tan Can at the workshop "Land prices, land taxes... how to make it reasonable?" organized by Thanh Nien Newspaper on July 22.
Speaking at the workshop, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the City has just determined land prices for 9 projects, and is expected to collect 65,000 billion VND in land use fees for the budget.
“This figure is good news because the budget has a large additional source of revenue, but the concern is whether it is reasonable or not? Because land prices are an input cost of the economy . There are many solutions to reduce housing prices, including how the government can determine that the revenue from land is reasonable,” Mr. Chau raised the issue.
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Deputy Minister of Finance Le Tan Can said that the draft Decree 103 is expected to be submitted to the Government in the direction of reducing land use fees when people convert from agricultural land to residential land. Photo: TN |
Citing the story of Mr. Nguyen An (residing in Hoc Mon, Ho Chi Minh City), he recently reported on the case of his family's level 4 house, built in 2005 on the land left by his grandparents with an area of about 75 m2, but to date has not been granted a land use right certificate. In 2010, the People's Committee of Hoc Mon District (old) granted a house number to this house.
At the end of 2024, Mr. An's family decided to apply for a certificate. The measurement results determined that the total area of the land plot was 208 m2. However, with the prescribed land price of more than 11 million VND/m2, when learning about the procedures and financial obligations, the family was shocked because the land use tax to be paid was nearly 1.7 billion VND, beyond the family's financial capacity.
Providing a solution to the above situation, Lawyer Truong Anh Tu, Chairman of TAT Law Firm, said that land prices must harmonize everything, not allowing the state to lose tax revenue; businesses to ensure profitable business, profit margins not decreasing; supply and demand not being affected and people being able to access them. That is the consistent goal. Thus, land prices must be reasonable, should be approached according to justice, not necessarily according to market prices.
Therefore, Lawyer Truong Anh Tu recommends that the entire valuation process and data should be transparent. There should be an electronic information portal open to all people, so that when people receive a tax notice of 1-2 billion VND, they can still go to this portal, access, and look up to know what basis, basis, and practice the tax is based on. Only when people can see the numbers and calculation formulas with their own eyes, will the price list be truly convincing and highly enforceable.
According to Mr. Tu, land use fees should only be collected from landowners and businesses when the state allocates them to them. For people who already have land, they should not be collected anymore and it is unreasonable. For adjacent plots of land, Mr. Tu proposed to exempt all land use fees when changing the purpose of use, where people have lived and cultivated stably.
“It is necessary to establish a mechanism to extend, postpone, and divide land use fee payments to help people have time to balance their finances, avoiding having to sell off assets or buy back their own land,” Mr. Tu suggested.
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| Experts say that land prices need to be built to harmonize everything, both to prevent the state from losing tax revenue and to ensure businesses make a profit. Photo: TN |
At the workshop, Deputy Minister of Finance Le Tan Can said that in the process of amending Decree 103/2024/ND-CP of the Government regulating land use fees and land rents, the Ministry of Finance received many opinions from businesses, associations and localities on land use fees and fees for converting agricultural land to residential land with many issues that need to be resolved and many different proposed solutions.
The Ministry of Finance has met directly and worked with businesses, associations, and localities and requested localities to promptly report on land use fees when converting the purpose from agricultural land to residential land.
Based on the synthesis, according to functions and tasks, the Ministry of Finance has submitted a draft to amend Decree 103, and at the same time sent a document asking for comments from the Ministry of Justice for appraisal before submitting it to the Government for promulgation with different options.
Regarding the case of calculating land use fees for households and individuals when changing land use purposes from agricultural land to residential land, recently, the Ministry of Finance has received feedback due to the fact that land prices on the land price list in some localities determined according to the 2024 Land Law are suddenly higher than the old land price list.
In particular, residential land prices have increased many times compared to agricultural land prices, so when the State allows the change of land use purpose from agricultural land to residential land, households and individuals must pay land use fees many times higher than before.
The Ministry of Finance has issued an official dispatch requesting localities to promptly report on the implementation of land use fee calculation when changing land use purposes for households and individuals.
In the immediate future, inheriting the 2013 Land Law, the Ministry of Finance plans to submit to the Government a plan to reduce land use fees when people convert from agricultural land to residential land in the context of land prices in some localities being suddenly higher than the old land price list.
Regarding the additional tax payment, the three groups proposed to maintain the collection rate, reduce the collection rate, and not collect the additional collection rate. These are the three proposed options. The Ministry of Finance has completed and has a plan to reduce the collection rate as well as reduce the time for calculating the fee after deducting the time for the competent authority to calculate the land use fee.
Regarding the proposal not to collect additional tax payments, since this is a content stipulated in the 2024 Land Law, the Ministry of Finance will take note and, together with the Ministry of Agriculture and Environment, report to the Government during the process of amending the 2024 Land Law.
Source: https://baodautu.vn/bo-tai-chinh-xay-dung-phuong-an-giam-tien-su-dung-dat-cho-nguoi-dan-d338048.html
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