Calculate correctly and sufficiently to clear the problem soon.

At the seminar "Land valuation: Correct and sufficient" organized by Thanh Nien Newspaper on June 14, experts said that valuation needs to be unified from the calculation method, and the Decree needs to be amended to soon remove obstacles so that the State can have a large source of revenue and businesses and people will also benefit.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), estimated that there are still more than 58,000 pink books that have not been issued to home buyers. Therefore, the remaining 5% of the investor's contract amount has not been collected and the product cannot be traded on the market, leading to underground transactions.

According to Mr. Chau, from 2005 to now, the proportion of state budget revenue from land, of which land use fees is the largest, accounting for 13.1% of total domestic budget revenue. This figure could be up to 15% - 16% in previous years. This is a very large number.

In 2023 alone, land fluctuations in Ho Chi Minh City are more than 300,000 cases. The greater the fluctuations, the more the economy recovers. Currently, Ho Chi Minh City has more than 1.8 million plots of land, the rate of red book issuance is up to 99.3% (higher than the national average). There are only 13,000 plots of land that have not been issued red books. In case of correct, sufficient and fair valuation, without over-collection, the ability to stimulate economic development and create revenue for the State budget is very large.

Among the 6 groups of reasons that cause the issuance of pink books for projects to be stuck, land valuation is the leading cause. Illustrative photo

According to Mr. Chau, among the 6 groups of reasons that make the issuance of pink books for projects still stuck, the leading one is land valuation. The criteria for implementing land valuation in Decree 44/2014 of the Government are stuck, mainly the method of calculating surplus, leading to the related officials getting into trouble with the law; businesses are also stuck. Meanwhile, businesses all want the regulations to be easy to understand and easy to implement.

Decree 12/2024 amending and supplementing Decree 44 has not yet revised the key issues on land valuation that HoREA has commented on.

The Prime Minister has set a deadline of June 16 for all ministries and branches to submit decrees for the Government to review before approval; make efforts by June 28 to sign the decrees, so that they can take effect together with the Land Law (expected on August 1) and be put into effect soon.

Dr. Tran Du Lich said that land price in Vietnam is the price of land use rights (LUR). Meanwhile, price must always be a product of the market, not a product of the State. A non-market mechanism cannot be called pricing.

According to him, there are 5 methods of land valuation in the world, but the difference in Vietnam is that other countries use valuation methods for tax collection and valuation in national security and defense. In our country, valuation is used to collect land use fees, so all projects are stuck. How to solve this problem, not only Ho Chi Minh City but also some provinces in the Central region are stuck.

"We have proposed that the State should think long-term, not need to collect land use fees but tax property, which will be lighter for businesses. Then, buyers will not dare to speculate, and if they do, they will have to pay taxes. Currently, land use fees account for 13% of total domestic budget revenue, which is a lot," Dr. Tran Du Lich emphasized.

According to Dr. Tran Du Lich, because of the revenue, some localities develop indiscriminately, leaving houses and land abandoned, thereby weakening resources. "I suggest that among many methods, we should propose removing the surplus calculation method. In particular, if the State transfers to enterprises the responsibility of declaring and pricing, each project is accounted for on costs... then the difference is settled and tax will be calculated. When that happens, enterprises that hire consultants will also be more honest, and they will improve their responsibility to harmonize the interests of the State, then everything will be cleared soon" - Mr. Lich said.

Source: https://nld.com.vn/tien-su-dung-dat-tinh-sao-cho-dung-va-du-196240614143214555.htm