People are interested in giving opinions on compensation and resettlement support.
Speaking at the communication workshop on the revised Land Law organized by the Ministry of Natural Resources and Environment on June 19, Mr. Dao Trung Chinh said that this draft law was first submitted to the National Assembly in April.
Previously, the public consultation was carried out from January 3 to March 15. To date, there have been more than 12.1 million comments on the draft revised Land Law.
Mr. Dao Trung Chinh informed about the draft revised Land Law
The contents that people are interested in contributing opinions focus on compensation and resettlement support with more than 1.22 million opinions; land allocation, land lease, and land use purpose conversion with more than 1.06 million opinions; land finance and land prices with more than 1.03 million opinions; and land use planning and plans with more than 1 million opinions.
After that, the Government continued to receive comments from full-time National Assembly deputies; the second social criticism from the Central Committee of the Vietnam Fatherland Front; the verification comments from the Economic Committee, the Ethnic Council and the National Assembly committees, and the comments from the National Assembly Standing Committee.
According to Mr. Dao Trung Chinh, the drafting agency has received comments and is studying to include the method of determining land prices in the law, but cannot include all of them because there are very detailed formulas, which would not be suitable if included in the law. The drafting agency is studying to include the content of the method and in which cases which method should be used.
"For example, regulations on information collection, authority to decide on land price coefficients, calculation formulas, discounts, etc. should be issued by a Government decree or a circular of the Ministry of Natural Resources and Environment, which would be more appropriate. If the law is too rigid, it will be very difficult to amend it later. The Government needs to be flexible in its management, so it should be guided by the Government," said Mr. Dao Trung Chinh.
Exposing the story of "two-price land"
Regarding the land database used as input for determining land prices, Mr. Chinh said that recently there has been a situation where the price in the transfer contract is "basically low even though taxes have been paid". The reason is that the transfer of land use rights has been subject to income tax, that is, income tax is levied on the difference between the previous purchase and the subsequent sale; if there is no difference, the tax is levied as a percentage of the land price in the land price list.
The draft Land Law needs a mechanism to encourage people to declare the correct land price.
"This encourages people to lie, people only declare low prices, there is no reason to declare high prices. We must regulate land prices close to market prices and we propose in this draft law to amend the income tax law on land use rights transfer to not tax income according to the difference but to use this price list to tax.
This encourages people to declare correctly to have a land database and tax correctly, at an appropriate level," Mr. Dao Trung Chinh affirmed.
Regarding the issue of when to impose higher taxes, Mr. Chinh said that there are still some contents that have not been institutionalized in the draft revised Land Law because they are not within the scope of the Land Law. The representative of the Ministry of Natural Resources and Environment said that the drafting committee has consulted, and the Minister of Natural Resources and Environment has been authorized by the Government to report to the National Assembly on issues that cannot be addressed by the Land Law.
Regarding land acquisition prices, according to Mr. Chinh, the draft revised Land Law has removed the land price framework and issued an annual land price list issued by the local People's Council to be closer to the local situation.
"I think it is not right to ask how to harmonize land prices between the State, investors and people. Instead, it is right to say that the collection policy must be harmonized. If we set low prices to attract investment, then the recovery will be subject to lawsuits.
In my opinion, prices must closely follow the market, and when and how to collect them to harmonize the interests of the State, people and businesses is the policy of collecting land use fees, land rents and land use taxes," Mr. Chinh shared.
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