At the 31st session of the 18th term of the Nghe An Provincial People's Council, many delegates reflected that the new land price list issued by the Provincial People's Committee from May 21 had a sudden increase, many areas increased from 2 to more than 10 times compared to the previous period. According to the reflection, the land price list has not clearly defined the subject, type of land, and is not suitable for actual conditions, causing great pressure on costs when people complete procedures to change land use purposes.
Responding at the meeting, Mr. Hoang Quoc Viet - Director of Nghe An Department of Agriculture and Environment - said that the 2024 Land Law, effective from August 1, 2024, has fundamentally changed the method of building a land price list, requiring market price access instead of the price range of the upper and lower approaches as before. The 2019 land price list only adjusted 8 contents, while the new Law stipulates adjusting 11 contents, forcing localities to promptly update to serve investment projects, resettlement land allocation, and auction of land use rights.
"The industry has calculated very carefully to minimize the impact on people and businesses. The highest increase in corporate land rental is about 1020%, except for the sudden points due to inadequacies from the old price framework or newly formed infrastructure, said Mr. Viet.
The Department also advised the Provincial People's Committee to submit to the People's Council to adjust the land use fee collection rate: commercial - service land from 55% to 20%, production and business land from 50% to 20%, mineral land from 100% to 40%.
The most pressing issue at present is that people who change land use purposes are subject to double their financial obligations. According to the previous Decree 45 on payment of only 50% of land use fees; but Decree 103 guides the new Law to require payment of 100% of the converted area. Nghe An and a number of provinces and cities have proposed that the Government amend this regulation, the Ministry of Finance has included the amendment in the new draft decree, expected to return to the previous level of 50%.
Previously, the story of Ms. Nguyen Thi Hong's family (Vinh Loc ward) having to pay nearly 4.5 billion VND to convert 300m2 of garden land to residential land caused a stir in local public opinion.
