Reduce additional land use fee to 3.6%: Draft Decree 103/2024

(NLDO) - Instead of collecting an additional 5.4% land use fee, the draft decree amending and supplementing land use fees and land rent proposes to reduce it to 3.6%.

The Ministry of Finance has just submitted to the Government a draft Decree amending and supplementing a number of articles of Decree 103/2024 and Decree 104/2024 to reduce additional land use fees.

Reduce additional usage fee to 3.6%

The above draft decree also aims to remove difficulties arising in the implementation of the 2024 Land Law, while at the same time being consistent with the two-level local government model, ensuring unity and transparency in implementation.

Notably, the draft Decree proposes a new plan to reduce the additional collection rate from 5.4% to 3.6%. This is a content that has been widely reported by the business community and the press in recent times.

According to the Ministry of Finance, reports from localities show that the application of the additional collection rate of 5.4%/year has not really harmonized the interests between land users and the state, and has not ensured a stable source of budget revenue.

Many localities are still facing delays in issuing notices of financial obligations on land due to high collection rates. Therefore, to balance interests, localities have proposed reducing the additional collection rate from 5.4%/year to 3.6%/year.

This 3.6% rate is calculated based on the average of 3 indicators during the implementation period of the 2013 Land Law (2014-2024), including: average deposit interest rate for 1-6 month terms, average annual CPI and average inflation rate.

Proposal to adjust additional land use fee reduction to 3.6%

Regarding the additional land use fee collection according to Point d, Clause 2, Article 257 of the Land Law, the Ministry of Finance proposes 3 options:

Option 1: Remove the provision on additional revenue, pending adjustment in the amendment of the Land Law.

Option 2: Reduce the collection rate from 5.4%/year to 3.6%/year, based on the above economic indicators.

Option 3: Maintain the rate of 5.4%/year, ensuring responsibility sharing between the State and land users.

The time for calculating the expected additional revenue is determined from the time of land allocation or field handover, after deducting 180 days for the State agency to determine the land price.

Regarding land use fees when changing land use purposes, the Ministry of Finance proposes 2 options:

Option 1: Reduce land use fees (30% within the limit, 50% outside the limit) for garden land and ponds adjacent to residential land.

Option 2: Maintain current regulations, do not reduce.

The Department of Public Property Management has sent a document to the Ministry of Agriculture and Environment asking for comments, because this content comes from the provisions of the 2024 Land Law.

Source: https://nld.com.vn/de-xuat-dieu-chinh-giam-thu-bo-sung-tien-su-dung-dat-xuong-con-36-196250711103715173.htm