Nghe An: Over 969 billion VND collected in land use fees from real estate projects.

(Baonghean.vn) - Implementing Announcement No. 225/TB-UBND dated April 20, 2016, of the Chairman of the Provincial People's Committee on the collection of budget revenue from urban real estate projects and mineral exploitation; recovering outstanding tax debts and handling the sale of state assets, relevant departments, agencies, and units have paid attention to implementation and have initially achieved positive results.

As of March 15, 2017, the total cumulative revenue from land use fees for real estate projects throughout the province was 969.3 billion VND.

Regarding the projects of the Dong A Joint Stock Company Branch and BMC Construction Materials and Trading Company Limited, the Tax Department has implemented many resolute measures to enforce collection, such as: penalties for late payment, publicizing information, deducting money from bank accounts, and declaring invoices invalid, but so far the money has not been collected.

BMC Construction and Trading Co., Ltd. is investing in a project in Quan Bau Ward, Vinh City. Photo: Viet Phuong

For example, BMC Construction Materials and Trading Company Limited, which invested in a project in Quan Bau ward, Vinh city, still owes over 28 billion VND in land use fees and late payment penalties. Although the tax authorities have notified the company of the outstanding tax and late payment penalties monthly, in accordance with the debt management and tax enforcement procedures, the company has still failed to comply.

Subsequently, the Vinh City Tax Department sent a letter requesting the company to provide its bank account details, but the company failed to do so. Recently, the Department issued a decision to enforce the administrative tax decision by deducting money from the company's accounts at the state treasury and credit institutions, but to date, the tax and late payment penalties have not been collected.

Regarding the settlement of land use fees for the townhouse project in Block 13, Truong Thi Ward, by Vinaconex 16 Construction Company, according to the Tax Department's report, the remaining area for which land use fees must be paid is currently 1,920.39 square meters.² The Department of Natural Resources and Environment has forwarded the dossier to a consulting unit to determine the land price for the project. After receiving the price from the consulting unit, the Department of Natural Resources and Environment is requested to promptly submit it to the Provincial Land Valuation Council for approval, before presenting it to the Provincial People's Committee for consideration and approval of the land price.

The Dong A Joint Stock Company branch has a commercial and service housing project in Hung Binh ward, Vinh City. Photo: Viet Phuong

According to the head of the Vinh City Tax Department, there are currently 11 real estate developers in the city who still owe land use fees totaling nearly 187 billion VND.

Specifically: BMC Construction Materials and Trading Company Limited (28 billion VND); Dong A Joint Stock Company Branch (over 21 billion VND); Tien Thanh Company Limited (nearly 12 billion VND), Thanh Vinh Investment and Production Joint Stock Company (nearly 5 billion VND); Construction Company No. 9 Joint Stock Company (over 4 billion VND); Thanh Nghe Tinh Joint Stock Company (over 28 billion VND); Bao Son Group Joint Stock Company (over 28 billion VND), Son Ha Construction Joint Stock Company (nearly 19 billion VND).

In addition, the following companies: Lung Lo Construction Company, TECCO New Technology Application Joint Stock Company; and Phuoc Tai Limited Company are currently processing debt extension procedures.

To collect land use fees from real estate projects in the province, the tax authorities are continuing to review the outstanding land use fees for each project and applying all prescribed measures to collect the money for the State budget.

Viet Phuong