Determining land prices using the surplus method often results in large errors, is inaccurate and difficult to implement, so National Assembly delegates proposed to abandon this method.
One of the goals of amending the Land Law is to price land close to the market. Therefore, after explanation and acceptance, the draft law submitted to the National Assembly at the 6th session proposed methods for land valuation, including comparison, income, surplus and land price adjustment coefficient.
However, Mr. Vu Hong Thanh, Chairman of the Economic Committee, said that due to many different opinions, the draft law proposes two options for land valuation. Option 1 is to stipulate in the law the content of 4 methods for land valuation, and assign the Government to determine the cases and conditions for application. The Government proposes to implement in this direction.
Option 2, the law states the content of land valuation methods and the cases and conditions for applying each method. The majority of opinions of the National Assembly Standing Committee agree with this option.
Commenting on the draft Land Law (amended) on November 3, Ms. Nguyen Thi Yen, Standing Deputy Secretary of Ba Ria-Vung Tau Province, said that the surplus method should not be used in determining land prices. She analyzed that this method is applied to estimate revenue and costs. Calculating the above assumed factors is very complicated, the results are often inaccurate and have large errors.
"For the same plot of land, just changing one indicator in the assumed factors will change the valuation result. This is the main cause of confusion and delay in determining and appraising land prices recently. Not to mention, each person has a different understanding in each situation and time", said the Standing Deputy Secretary of Ba Ria - Vung Tau province.
Ms. Nguyen Thi Yen, Standing Deputy Secretary of Ba Ria-Vung Tau province, spoke at the discussion of the draft Land Law (amended) on November 3. Photo: National Assembly Media
Ms. Huynh Thi Phuc, Deputy Head of the Mass Mobilization Committee of Ba Ria - Vung Tau Provincial Party Committee, also said that using the surplus method to determine land prices is difficult to implement.
"Each business has different cost ratios, revenue, and selling prices, and these are all estimated data from investors, so the reliability is not high," said Ms. Phuc, and suggested considering this method.
In this aspect, Mr. Le Minh Nam, Standing Member of the Finance and Budget Committee said, each method has its advantages and disadvantages and is only suitable for a group of land valuation subjects.
"What should be done in case of different valuation results? If the principle is not resolved and regulated in the law, it will be difficult to implement even if the Government provides guidance," said the Standing Member of the Finance and Budget Committee.
Mr. Nam proposed to supplement the principles and methods of applying prices in different situations or applying the elimination, combination, and average methods to determine land prices.
"Only when there is a legal basis to prove the pricing decision can it be feasible and create peace of mind for the decision maker. Otherwise, the fear of making mistakes and the situation of bottlenecks will continue to exist," he said.
Sharing the same view, Mr. Le Thanh Van, Standing Member of the Finance and Budget Committee, said that determining land prices is not difficult or complicated, the problem is choosing the appropriate method for each type of land. He proposed to stipulate a principle in this draft law so that the Government has a basis to guide implementation.
For example, residential land is associated with real estate, associated with the property rights of the land grantee, so the market comparison method should be applied, or a combination of comparison with the surplus method. Or production land is determined according to the income and deduction method.
"If the principles are clearly defined in the law, the Government will have a basis for guidance. For example, taking the average price of 5 years and choosing the highest year to determine land prices, people will not be disadvantaged," Mr. Van suggested.
In addition, the Standing Deputy Secretary of Ba Ria - Vung Tau Province, Nguyen Thi Yen, also suggested considering and clearly defining the roles and responsibilities of land valuation consulting organizations when participating in the Appraisal Council. In reality, there are currently projects with bids nearly 20 times, but no consulting units participate.
Because, in reality, for the same land plot, each method and consulting unit gives a different price. Therefore, Ms. Yen proposed that the Government should provide detailed regulations and instructions when implementing, to avoid legal risks for agencies that appraise, evaluate land prices and approve land prices.
According to the program, the draft Land Law (amended) will be voted and approved by the National Assembly on November 29, but in today's discussion, many delegates suggested that the time to pass this law should be considered.
Source link
Comment (0)