Ho Chi Minh City Real Estate Association (HoREA) has just issued a document commenting on the draft Resolution of the Government on removing and handling difficulties in calculating land use fees for households and individuals when converting land use purposes from agricultural land to residential land.
Mr. Le Hoang Chau - Chairman of HoREA - said that there is an "urgent and important problem arising from practice" that needs to be resolved, because Clause 1, Article 159 of the 2024 Land Law only stipulates the application of land price lists to calculate land use fees when the State allows the change of purpose, recognizes land use rights for households and individuals but has not yet regulated the application of land price lists in the direction of the area within the lower calculation limit and the part exceeding the higher calculation limit.
Therefore, Clause 1, Article 8 of Decree 103/2024/ND-CP must stipulate the application of 100% of the land price list for both the area within the limit and exceeding the limit when changing the purpose, recognizing, and extending land use. This causes the amount of money that people have to pay to be too high, beyond their financial capacity, and is also the reason for increasing land prices, house prices and compensation, support and resettlement costs when the State reclaims land to implement public investment projects.
According to HoREA, there is currently no " problem" in calculating land use fees, because Decree 103 already has a specific formula. The urgent issue is that the new 2024 Land Law only regulates the application of the general land price list without allowing the application of a lower level for the area within the limit and a higher level for the area exceeding the limit.
Therefore, people have to pay a large amount of money, beyond their financial capacity, and at the same time contribute to pushing up land and house prices. This is a point that needs to be handled by the Government in a resolution.
The draft currently stipulates the collection rate of no less than 30% for the area within the limit and no less than 50% for the part exceeding the limit. HoREA recommends "ards" and reducing the percentage of land use fee collection rate to " 20% of land use fee for land area within the residential land allocation limit" and to " 30% of land use fee for land area exceeding the residential land allocation limit" to apply uniformly, creating convenience for localities and in accordance with payment capacity.
According to the analysis, the adjusted land price list in many localities has increased sharply. If the rate is kept at 30% and 50%, land use fees will still be high. With the proposal of 20% and 30%, people will reduce the additional burden compared to the current one.
HoREA also proposed amending the regulation that the collection rate is only calculated once for a household or individual. According to the association, for plots of land with both houses and land for perennial crops or inherited by many people, this calculation may not be reasonable, easily leading to inadequacies.
Regarding the opinions of experts on exempting land use fees for the conversion area within the residential land allocation limit, the association believes that this is an issue that can be considered.
In reality, many households and individuals across the country, especially in rural areas, are inherited the right to use residential land with gardens, ponds, barns, and land for growing perennial crops attached to the same plot of land, passed down through many generations. Therefore, the association recommends that the Ministry of Finance consider and submit to the Government and competent authorities for decision.
In case of exemption from the limit and collection of 30% for the excess, the land use fee that people must pay will be significantly reduced.
