Proposal to remove the regulation on additional land use fee payment

The Ministry of Agriculture and Environment has drafted a law amending and supplementing a number of articles of the 2024 Land Law and is collecting opinions from a number of units before finalizing the draft to submit to the National Assembly at the 10th session.

One of the notable amendments is the removal of the provision on additional land tax collection.

Accordingly, in the draft law amending and supplementing a number of articles of the 2024 Land Law this time, the Ministry of Agriculture and Environment has proposed to amend and supplement point d, clause 2, article 257 of the 2024 Land Law in the direction of removing the regulation on additional land use fees to be paid for the period when land use fees and land rent have not been calculated.

Proposal to remove the regulation on paying additional land use fees. (Illustration photo)

Thus, this amendment has removed one of the recently controversial provisions. Previously, according to Clause 2, Article 50 of Decree 103/2024/ND-CP regulating land use fees and land rents, for projects that have had decisions on land allocation, land lease or permission to change land use purposes before August 1, 2024 but have not yet determined the land price, land users will have to pay an additional amount equivalent to 5.4%/year on the amount of land use fees payable during the period awaiting valuation.

This regulation is intended to ensure the principle of not losing budget revenue during the land use phase without completing financial obligations.

However, many opinions have said that this regulation is unreasonable and unfair to businesses and people using land because the slow land valuation is due to State agencies.

Mr. Tran Anh Tuan, representative of a real estate company in Ho Chi Minh City, shared that the company's project was allocated land from November 2023, but due to the lengthy approval process, there is still no land price to pay financial obligations.

“ The business suddenly suffered a double loss. We had to accept the delay in project progress, while we still had to pay interest on the borrowed money but could not bring the product to market, and now we have to face the burden of paying additional taxes of billions of dong ,” he said.

Not only does it cause inconvenience and possibly result in businesses being charged hundreds of billions of dong more, but from a legal perspective, according to experts, the above regulation goes against the principles of law enforcement.

Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association (HoREA) emphasized that determining land prices and paying land use fees are prerequisite procedures for enterprises to be recognized for the right to use land for commercial purposes. Therefore, amending the shortcomings of Decree 103 needs to be urgent and quick. The Chairman of HoREA recommended that the Ministry of Finance must proactively have a plan to amend, not wait until Article 257 of the 2024 Land Law has to be amended before amending Articles 50 and 51 of Decree 103.

Source: https://baolangson.vn/de-xuat-bo-quy-dinh-nop-tien-su-dung-dat-bo-sung-5054537.html