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People are helpless in converting garden land into residential land, the Ministry of Finance has proposed a solution to overcome the difficulties.

Quoc Duong DNUM_ADZAHZCACF 10:49

Faced with the situation where many people are helpless in converting garden land into residential land due to having to pay billions of dong, the Ministry of Finance has proposed a solution to overcome the difficulty by reducing land use fees by 50%.

People have difficulty because the tax is too high

In Nghe An and Ba Vi (Hanoi), many people have encountered serious difficulties when converting land use purposes from garden land to residential land. Typically, Mr. Tran Duy Dong and his wife, Ms. Nguyen Thi Hong in Vinh City, had to pay nearly 4.5 billion VND when converting 300 square meters of garden land to residential land.

Similarly, a resident in Ba Vi commune completed the procedure to convert more than 210 square meters of perennial land into residential land but could not afford to pay the land use fee, forcing the government to revoke and cancel the decision allowing the conversion.

Ms. Nguyen Thi Thoa, Deputy Director of the Department of Public Asset Management (Ministry of Finance), said that the 2024 Land Law has removed the land price framework, and assigned localities to issue land price tables to get closer to market prices. This has led to an increase in land price tables while financial obligations are still calculated according to the prices in the tables.

'The Ministry has anticipated the possibility that land prices will increase, while financial obligations are still calculated according to the prices in the land price list,' Ms. Thoa explained.

Người dân bất lực chuyển đổi đất vườn thành đất ở, Bộ Tài chính đã đưa ra phương án gỡ khó

Proposal to reduce land use fees by 50%

To address this situation, the Ministry of Finance is seeking comments on the draft Decree amending and supplementing Decree No. 103/2024. In particular, the Ministry proposes to add regulations on handling transitional cases.

Specifically, for households and individuals changing land use purposes from agricultural land in the same plot of land with a house to residential land, land use fees will be collected at 50% of the difference between land use fees based on residential land prices and agricultural land prices.

This regulation applies to cases where garden land and ponds on the same plot of land with a house were previously not recognized as residential land but now want to be converted into residential land.

Ms. Thoa said that the Ministry of Finance has sent a document to localities requesting reports and assessments on land use fee collection for individuals and households. After synthesizing the report, the Ministry will conduct a comprehensive assessment and coordinate with the Ministry of Agriculture and Environment to review and propose amendments to the provisions of the law.

'We are finalizing the draft decree to seek comments from the Ministry of Justice,' Ms. Thoa informed about the implementation progress.

This proposal is expected to help reduce the financial burden on people when carrying out land conversion procedures, while creating favorable conditions for families to complete legal procedures on land.RetryNO

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People are helpless in converting garden land into residential land, the Ministry of Finance has proposed a solution to overcome the difficulties.
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