Complete land law to prevent loss of resources

VCN  - The role of state management on land economy and land economic policies in our country is still limited, which is the fundamental cause of the loss of revenue from land and creating inadequacies in the land management work.
complete land law to prevent loss of resources Must pay rental land fee if using public land for business
complete land law to prevent loss of resources Land for irrigation and transportation: Free of charge
complete land law to prevent loss of resources
There has been a state of budget loss from putting public land into the market, wasteful use of public land, inefficient capitalization of land. Source: Internet.

Budget losses from land prices

According to Prof. Dang Hung Vo, former Deputy Minister of the Ministry of Natural Resources and Environment, in fact, the land is being used wastefully, inefficiently, the financial resources from the land are not fully exploited, the revenues from land are too low compared to the current potential and the state still lost revenue. “The land price frame and land price table are always lower than the market price, the specific valuation process still does not fully guarantee independence and objectivity. There has been a state of budget loss from the introduction of public land into the market, wasteful use of public land, inefficient capitalization of land,” said Professor Dang Hung Vo. Also according to Prof. Dang Hung Vo, the land tax system is too low, not a tool to regulate the market, the transparency of the information on land economic management is weak, the participation of the non-state actor is still limited due to the lack of specific methods to implement and no accountability has been implemented.

According to Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, land is a valuable resource of the country. The Land Law has been increasingly improved, positively affecting the socio-economic development of the country, but the current land resources have not promoted the highest efficiency stem from the legal system, is not really complete and the weakest stage is still the implementation of land law; among the 10 major limitations of the land legal system, which reduces the efficiency of land economy - land finance, stated by Mr. Le Hoang Chau. Mr. Chau emphasized that the land use fee is a state budget revenue that is stipulated in the Land Law, which should have been stipulated in the Tax Law on the principle that all state budget revenues are taxes and fees stipulated in the Tax Law. "Land use fees that are currently "unknown" do not guarantee transparency and predictability before making investment decisions; The land use fee is a burden for both investors and consumers and is creating a mechanism of "asking - giving", leading to the loss of state budget due to the "double sawing, triple sawing" agreement,” Mr. Le Hoang Chau said.

About state budget revenue from land, Assoc. Prof. Dr. Nguyen Dinh Tho, Department of Economic and Land Fund Development (General Department of Land Administration) said that the land rent accounted for only 9.66% - 19.06% of the total revenue from land and tends to increase over the years (2016 reached 23,672 billion VND, accounting for 19.06%). And the non-agricultural land use tax revenue only accounts for 1.14% - 2.46% of the total revenue from the land and tends to decrease over the years (in 2016 reached 1,417 billion VND, accounting for 1.14%). In addition, personal income tax from land use right transfer only accounts for 0.42% -1.93% of the total revenue from land and tends to decrease over the years (in 2016 reached 627 billion VND, accounting for 0.51%).

Mr. Nguyen Dinh Tho also pointed out the limitations in current land price determination in Vietnam. Accordingly, the method of calculating land use levy and land rent in some cases is not appropriate. The determination of specific land prices for calculation of land use levies and land rents takes time and effort. Besides, investors cannot determine the input cost when implementing a project, and especially the land price in the land price table is much lower than the market land price.

Issue "Property – Real estate Tax Law" at the appropriate time

One of the solutions given by Mr. Nguyrn Dinh Tho to strengthen state management for land, is the construction of a land price grid. Accordingly, it is necessary to promote the implementation of bilateral and multilateral projects to apply advanced land valuation technologies of countries such as Japan and Korea in determining land prices for each parcel of land. At the same time, step by step building the land price grid on the basis of developing a value zone map for areas with similar characteristics on the basis of data on land price frame, land price list, and specific land price, that are determined through auction activities, compensation, agreements, and actual transactions.

Proposing the Government to change the current method of calculating land use fees, Mr. Le Hoang Chau proposed to add a new clause to Article 107 of the Land Law, specifically stipulating: "Collection of land use levies for cases of transferring items using land from agricultural land to residential land, with a fee equal to 15% (or ...%) of the land price table issued by the provincial People's Committee". In the long term, Mr. Chau proposes to determine the use of land fee as a tax, as proposed by the HCMC People's Committee to the Government as follows: "In the long term, it is recommended to abandon the concept of "land use levy" instead of replacing the land use tax with the tax rate. Certainly, about 10% or 15% of the land price list is proposed, thus ensuring transparency and easy to calculate and eliminate the application of “ask – give” mechanism, to limit the collection of land use fees for the first time and to maintain a sustainable and long-term revenue source for the State," said Mr. Le Hoang Chau. Implementing this calculation, according to Mr. Chau, in the short term, it is possible to reduce the source of state budget revenue, in this case, the State may consider issuing "Property - Property Tax Law" at the appropriate time (after 2020) to offset the budget revenue and will become a stable and sustainable source of revenue. The real estate market will therefore be more transparent; consumers will have the opportunity to benefit because housing costs would be less, and more favorable than before, because currently land use fees are accounting for about 10% of the price of apartments, above 30% of townhouse prices and about 50% of villa prices in the project.

complete land law to prevent loss of resources Removing PPP bottlenecks to attract FDI into infrastructure

VCN - On May 10, 2018, the Government issued the Resolution No. 54/NQ-CP approving the policies of the ...

Emphasis on limiting land prices far lower than the market at all times, specifically, Hang Dao, Hang Ngang and Le Thai To streets with the highest listed land prices at a specific level of 162 million VND/m2, but in fact, the price of land traded in the market is always much higher, popular with 500-800 million VND/m2, some places up to 1 billion VND/m2, Associate Prof. Dr. Ngo Tri Long also said that the revenue from land is loss, including land valuation. Regarding solutions to overcome limitations in land valuation, expert Ngo Tri Long said that when valuating land (for land to be recovered), there must be an agreement of the party whose land is acquired. This means that the person whose land is acquired. Recovery must be a part of the land valuation process. If no agreement is reached, the person whose land is recovered has the right to request an independent valuation agency to re-appraise it. "Land prices determined must be based on agreements with land users. In case no agreement is reached, the person whose land is revoked has the right to request the valuation agency to determine the price, the real estate price determined by the price of the valuation agency,” said Associate Professor Ngo Tri Long suggested.

By Hoai Anh/ Huu Tuc

Related News

Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
Accelerating decentralization in public asset management

Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version