Department of Finance responds to voters' opinions on the rate of land use fee regulation from auction activities

Voters of wards and communes in Vinh city proposed that the Provincial People's Committee consider and submit to the Provincial People's Council to adjust the regulations on the rate of land use fee adjustment from land use fee auction activities for land fund exploitation planning areas in Article 6, Regulations attached to Resolution No. 20/2021/NQ-HDND dated December 9, 2021 of the Provincial People's Council promulgating regulations on decentralization of state budget revenue sources, local budget expenditure tasks and the rate of revenue sharing (%) between budgets of local authorities at all levels in Nghe An province for the period 2022-2025: "For land use fees for planning areas auctioned by Vinh city and wards and communes: Submit the entire amount collected after the auction to the state budget, of which 100% of the cost of compensation for site clearance, resettlement support and investment in infrastructure construction of that planning area is regulated for the city budget, the remaining amount is regulated for 3 budget levels according to regulations".

This will help resolve current problems and difficulties, creating conditions for Vinh city to be proactive in management and operation, speed up investment in infrastructure projects to exploit land funds in the area, and create revenue for all budget levels.

Regarding this content, the Department of Finance responded as follows:

Based on the proposals of relevant agencies and units and in order to comply with the provisions of the Tax Law, the Law on Public Investment, the Law on State Budget on the process of accounting, collection and use of land use fee revenue, the Department of Finance has chaired the drafting of a Resolution amending and supplementing Resolution No. 20/2021/NQ-HDND dated December 9, 2021 of the Provincial People's Council regulating the decentralization of state budget revenue sources, local budget expenditure tasks and the percentage (%) of revenue sharing between budgets of local authorities at all levels in Nghe An province for the period 2022-2025, reported to the Provincial People's Committee to submit to the Provincial People's Council, in which the new content is added: "Land use fees collected from land plots: valuation, resettlement, auction organization is left with 25% to be arranged with other legal capital sources to pay compensation, support, resettlement, infrastructure investment, related costs. or refund to the Land Development Fund; supplement capital for public investment plans and this 25% is regulated as follows: If the provincial level implements, the provincial budget enjoys 100%; if the district and commune levels implement, the district budget enjoys 100%; Particularly for resettlement land areas of the province: this 25% is regulated to the provincial budget".

To date, the Draft Resolution has been approved at the regular meeting of the Provincial People's Committee in September 2023. The Department of Finance is completing the dossier to report to the Provincial People's Committee to submit to the Provincial People's Council to issue the Resolution according to regulations.