Stop the 2 price situation

Many experts affirm that issuing an annual land price list will limit the situation of two prices.

Eliminate two-price land

According to the provisions of the 2013 Land Law, the land price list is regulated every 5 years and must be adjusted and supplemented in case of fluctuations in market land prices.

However, the Land Law (amended) has removed this provision and instead the provincial People's Committee announces it annually at the beginning of the year.

Agreeing with this new content, Dr. Tran Quang Huy, Hanoi Law University, assessed that the principle of land valuation must comply with market principles, meaning that land prices must be flexible, highly up-to-date, close to market prices, and have an impact in a short period of time.

" If the land price list lasts for 5 years according to a term of the Provincial People's Council as it is now, then even if the land price is adjusted by increasing by 20% or decreasing by 20%, it will still be a very forced price, lacking market orientation, not updated, and outdated with the market. Therefore, the regulation in the Draft Land Law (amended) on annual periodic construction, public announcement and application from January 1 of the year shows flexibility and updating according to the market mechanism," Mr. Huy assessed.

The revised Land Law will eliminate the dual-price land policy. (Illustration photo: Cong Hieu). — The revised Land Law will eliminate the dual-price land policy. (Illustration: Cong Hieu).

Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate, stated: With a 5-year adjustment period, land prices are no longer accurate.

" In fact, recently there have been areas where land prices fluctuated by several hundred percent in one year, not five years. Therefore, the five-year land price list is outdated and does not meet the requirements of State management of land ," said Mr. Tuan.

In addition, Mr. Tuan said that currently, the land price list is also used to calculate income tax from land use rights transfer. Recently, the regulation on land price to collect income tax from land use rights transfer is the price stated in the transfer contract. In case the price is higher than the land price list, the price stated in the contract will be used, otherwise, the price in the land price list will be used.

This leads to a situation where the actual purchase price is very high but the contract price is lower than the land price list to calculate tax according to the land price list. This results in budget loss and more importantly, the state does not have correct land price data to carry out the next step of specific land valuation.

Therefore, the annual issuance is to keep close to market prices and to make people aware of protecting their interests.

" When making a transaction, the exact amount of money for buying and selling will be recorded. In addition to stabilizing tax revenue, people's rights are protected through full notarization, and the State has a database of market land prices to serve the construction of a land price database, build land prices and determine specific land prices, " Mr. Tuan analyzed.

Beneficial to the state budget

Lawyer Tran Duc Phuong, Ho Chi Minh City Bar Association, also said that the annual land price list, announced at the beginning of the year, will be close to the land price on the market because the current land price list is much lower than the market price.

Amending the annual land price regulations, the State will not lose tax revenue. (Illustration photo)

And when the land price list is adjusted according to annual market fluctuations, lawyer Phuong believes that it will benefit the State budget. Because the land price list is the basis for calculating land use fees, income tax, etc.

“ Provinces and cities adjust and issue land price lists closer to market prices as the basis for calculating personal income tax from real estate transfers. At that time, people must declare the actual real estate transfer price according to the market price. This helps the State avoid losing budget revenue like the current situation of declaring “two prices” when buying and selling real estate ,” lawyer Phuong analyzed.

Sharing the same view, the director of a real estate company in Hanoi also expressed that currently, the land price list regulated by localities has a time limit of 5 years, which is too long, has a lot of delay and does not closely follow the price fluctuations of the market.

To make information about the real estate market transparent, there needs to be a department specializing in entering land prices. On the other hand, information about real estate transactions needs to be paid through banks.

“ The most important thing is transparency. Only then can we avoid tax losses ,” he said.

In addition, removing the land price framework is necessary, helping to fundamentally change the mindset, because people have access to the actual market price. On the other hand, it also limits a series of problems leading to complaints and lawsuits related to land as at present.

According to the Land Law (amended), the provincial People's Committee shall develop and submit to the People's Council of the same level for decision the first land price list for promulgation and application from January 1, 2026. Every year, the provincial People's Committee shall submit to the People's Council of the province for decision on adjustments, amendments, and supplements to the land price list for promulgation and application from January 1 of the following year. In case the land price list needs to be adjusted, amended, or supplemented during the year, the provincial People's Committee shall submit to the People's Council of the province for decision.
According to Chairman of the Economic Committee Vu Hong Thanh, the regulation of annual land price tables is a content that has been carefully researched by agencies and submitted to the National Assembly for discussion many times during the process of explaining, receiving, and revising the draft law.

Chau Anh

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