Land conversion fee is too high, what does the Ministry of Finance say?

(CLO) The Ministry of Finance has just issued a document responding to the petition of voters in Quang Ngai province regarding the difficulties in converting land use purposes from garden land and agricultural land to residential land due to the current land use fee being too high, beyond the financial capacity of many households.

According to voters in Quang Ngai province, the conversion of land use purposes from garden land to residential land is facing many difficulties due to the land use fee being too high, beyond the financial capacity of the people. It is recommended to study and adjust the land use fee collection policy accordingly.

Responding to voters' petitions, the Ministry of Finance said: On January 18, 2024, the National Assembly promulgated the Land Law, effective from August 1, 2024. Clause 1, Article 156 of the 2024 Land Law stipulates: When changing the land use purpose, land users must pay land use fees and land rent in one payment for the entire lease term 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.

The conversion of land use from garden land to residential land is facing many difficulties due to the high land use fees. (Photo: ST)

To implement this regulation, the Government issued Decree No. 103 on land use fees and land rent. According to Article 8 of Decree 103, households and individuals who change the purpose of land use from agricultural land to residential land must pay land use fees calculated based on the difference between the price of residential land and the price of agricultural land at the time of the decision to change the land use purpose.

However, in reality, recently, the Ministry of Finance has received comments, recommendations, and proposals from localities, and information reflected by the press about the fact that the land prices in the Land Price List in some localities determined according to the 2024 Land Law are suddenly higher than the old Land Price List (according to the 2013 Land Law).

In particular, the price of agricultural land increases at a lower rate, so when the State allows the conversion of land use purpose from agricultural land to residential land, households and individuals must pay land use fees many times higher than before, and there is a proposal to adjust the land use fee collection level in this case to reduce financial obligations for the people.

The Ministry of Finance said that adjusting land prices in the Land Price List is under the function and responsibility of the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment).

This agency has sent an official dispatch to localities on state management of land prices and adjustment, amendment and supplementation of the Land Price List according to the provisions of the Land Law.

Accordingly, localities are required to review and adjust the Land Price List in areas with prices that are not suitable to reality, applying the regulations until December 31, 2024. The adjustment is implemented in accordance with the procedures in Article 17 of Decree 71/2024/ND-CP dated June 27, 2024 of the Government.

Regarding the functions and tasks of the Ministry of Finance, receiving the above opinions, recommendations, proposals and reflections, to remove difficulties and ensure housing needs for people, the Ministry of Finance is researching and proposing the Government to issue a Resolution on removing and handling difficulties related to calculating land use fees for households and individuals when changing land use purposes from agricultural land to residential land.

Therefore, the Ministry recommends that voters of Quang Ngai province comply with the provisions of the law after it is issued by competent authorities.

Source: https://congluan.vn/phi-chuyen-doi-sang-dat-o-qua-cao-bo-tai-chinh-noi-gi-10317784.html