On the afternoon of September 22, the National Assembly Standing Committee gave opinions on the draft Law amending and supplementing a number of articles of the Law on Corporate Income Tax (CIT), the Law on Non-Agricultural Land Use Tax (SDĐPNN), and the Law on Personal Income Tax (PIT).
Presenting the submission of the draft law, Deputy Minister of Finance Le Tan Can said that the development of the law aims to contribute to creating a breakthrough in the development of education and training in Resolution No. 71-NQ/TW, financial policy and tax policy on land in Resolution No. 21-NQ/TW.
At the same time, ensuring the unity and synchronization of the legal system, in accordance with tax management practices.
According to the submission, the current Law on SDĐPNN stipulates a tax rate for encroached land, accounting for 0.2% and does not apply a limit.
Through summary and assessment, it shows that the effectiveness of collecting SDĐPNN tax on encroached and occupied land is low, the amount collected is still low compared to the effort put in, the reasons stem from taxpayers and tax management work.
Land law has specific regulations on sanctions for prohibited acts in the field of land (including acts of encroachment and land occupation).
The act of encroaching and occupying land is subject to administrative penalties and may be prosecuted for criminal liability for the crime of violating regulations on land use. Regulating taxes on prohibited acts is unnecessary and ineffective in practice.
Accordingly, the Government proposes to remove the regulation on tax rates for encroached and occupied land in Clause 7, Article 7 of the Law on SDĐPNN Tax.
Preliminary appraisal, Member of the Party Central Committee, Chairman of the Economic and Finance Committee Phan Van Mai said that according to current regulations, tax payment for encroached and occupied land is not the basis for recognizing the legal land use rights of taxpayers for encroached and occupied land areas.
Therefore, the majority of opinions believe that in the case of encroached land plots/areas that are still in use and have not been handled or recovered according to the provisions of land law, it is still necessary to collect taxes on this encroached land area so as not to lose state budget revenue.
Concluding this content, Member of the Party Central Committee, Vice Chairman of the National Assembly Nguyen Thi Hong proposed to continue to carefully review and clarify the relationship between tax collection and land acquisition handling and the implementation of financial obligations under the land law.
It is necessary to ensure that there are no unreasonable issues arising between legal land users and people with encroachment acts, and not create loopholes to take advantage of policies..." - the Vice Chairman of the National Assembly emphasized.
