Nghe An Provincial People's Council approved the draft Resolution to adjust and supplement the land price list.

On the afternoon of April 28, in Vinh city, the People's Council of Nghe An province, term XVIII, 2021 - 2026, held the 28th session (Special session).

Adjust and supplement land prices close to market prices

At the meeting, the Provincial People's Council unanimously approved the draft Resolution amending and supplementing Resolution No. 19/2019/NQ-HDND dated December 12, 2019 of the Provincial People's Council approving the price list of land types in Nghe An province from January 1, 2020 to December 31, 2024.The Resolution takes effect from May 9, 2025.

Accordingly, the draft Resolution amends and supplements Clause 1, Clause 2, Clause 3, Clause 4, Article 2, Resolution No. 19 dated December 12, 2019 of the Provincial People's Council as follows:

Land price list for non-agricultural production and business (excluding commercial and service land) is equal to 20% of the price of adjacent residential land (same route location) or residential land with equivalent location (same route and same infrastructure).

Commercial and service land price list is equal to 25% of the price of adjacent residential land (same route location) or residential land with equivalent location (same route and same infrastructure).

Land price for production and business purposes serving mineral exploitation purposes is 40% of the price of adjacent residential land (same route location) or equivalent location.

Draft Resolution amending and supplementing Clause 6, Article 2, Resolution No. 19 dated December 12, 2019 of the Provincial People's Council as follows: For land plots, residential land plots and non-agricultural land adjacent to at least 2 intersecting roads, on the basis of the Price List specified in Clause 1 and Clause 2, the price is also determined as follows:

a. The price increase is at least 10% compared to the land plot on the same road with a higher price (applicable to land plots with a depth of 30m or less from the road construction boundary).

b. For land plots with a depth of over 30m, calculated from the road construction boundary, in addition to determining the corner lot price increased by 10% according to the provisions in Point a of this Clause, the price of the remaining land area is determined as follows:

Determine the price of the first 20m area along the road (position 1) in order from the road with the highest price to the road with the lowest price.

The remaining area is determined according to the route with the highest price using the classification method in Clause 7, Article 2. Classification for the remaining adjacent route is only carried out when the price of this route is not lower than 60% of the price of the route with the higher price.

Research and calculate reasonable increase

According to the Provincial People's Committee's Report, the adjustment and supplementation of land prices in the province has been studied and calculated at a reasonable increase level, without greatly affecting the socio-economic development of the locality, people, businesses and investors.

The adjusted and supplemented land price list basically increases about 3-4 times compared to the land price list for the period 2020 - 2024 (except for some places with sudden increases).

Therefore, the Provincial Land Price List Appraisal Council assigned the Department of Agriculture and Environment to study and adjust the reduction of the proportion of commercial and service land, non-agricultural production and business land and mineral exploitation land to 25, 20 and 40% respectively, then the impact level is not large on the annual land tax payment of enterprises (the increase margin is basically not more than 15% compared to the land price level in the price list for the period 2020 - 2024 and coefficient K in 2024 according to the provisions of the Land Law 2013).

Particularly for households and individuals, it will affect the implementation of financial obligations of land users in cases where the State recognizes land use rights and allows the change of land use purpose within the limit, due to the increase in residential land prices compared to the current land price list.

In case of exceeding the limit, there is no impact (because the 2013 Land Law stipulates that in case of exceeding the limit, the specific land price must be determined).

Because the land price increases compared to the current land price list, it will affect the tax payers of non-agricultural land use. However, the increase does not have a big impact on land users, because the rate of tax payment for non-agricultural land use is low (0.03% x land price in the price list), most land users pay less than 1 million VND/year.

The proposed increase in land prices will resolve the problem of determining financial obligations when transferring land use rights (tax evasion, due to the large difference between the actual transfer price and the price stated in the transfer contract), ensuring fairness for land users, transparency in real estate business, contributing to increasing budget revenue.