Need to clarify the content of 5 land valuation methods
The Draft Law on Land (amended) was submitted to the National Assembly Standing Committee at the 23rd Session (regular session in May 2023) and is expected to continue to be discussed by the National Assembly at the upcoming 5th Session.
Deputy Prime Minister and Minister of Natural Resources and Environment Tran Hong Ha said that from January 3, 2023 to March 15, 2023, public consultation on the draft Land Law (amended) was organized. The organization of public consultation was carried out seriously, synchronously, democratically, scientifically, publicly, transparently, in-depth, ensuring substance and effectiveness with many diverse and rich forms down to the grassroots level of communes, wards, towns, residential areas, and residential groups; mobilizing most agencies and organizations in the political system and all social strata to participate; attracting the attention of many classes of people in the country and overseas Vietnamese, truly becoming a profound political activity, an important political-legal event. The opinions of the people all showed deep interest, enthusiasm, and responsibility.
23rd session of the National Assembly Standing Committee (regular session May 2023).
In response to comments from the public, scientists, and experts, the Government has directed the drafting agency to coordinate with relevant agencies to complete the Report synthesizing public opinions, the Report explaining and receiving public opinions, and the Report assessing the additional impacts on new contents and the draft Land Law (amended).
Accordingly, regarding the application of law, the majority of opinions agree with the provisions on the application of law as in the draft Law; at the same time, it is proposed to stipulate that the Land Law is the original law, and laws related to land must be consistent with the Land Law. There are opinions suggesting to supplement the application of some special cases of specialized laws. There are opinions suggesting not to stipulate this content but to apply according to the provisions of the Law on Promulgation of Legal Documents. The draft Law has been reviewed and some contents have been adjusted to be suitable...
The Standing Committee of the Finance and Budget Committee believes that land price is the most complicated and important content in the draft Law, which is the decisive factor for the rights and financial obligations of the relevant entities. Most disputes arising in the land sector originate from the failure to agree on land prices. Therefore, the draft Law needs to specify and clarify the contents on principles, bases, and methods of land valuation. Specifically, it is proposed to clearly stipulate "other factors affecting land prices" including which factors are used as the basis for determining land prices; stipulate "information on revenue, costs, income from land use according to the market", it is proposed to clarify which market the information is from, the legal basis, the reliability and accuracy of this information, etc.
The draft Law lists 5 land valuation methods, but the content of these methods is unclear, the method of application for each type of land or the order of priority to be applied is unclear. Therefore, the Government needs to supplement the provisions in the draft Law on the principles of land valuation methods as a basis for assigning the Government to provide specific guidance.
Members of the Finance and Budget Committee suggested that it is necessary to clarify the content of the regulation "The People's Committee at the provincial level issues the annual periodic land price list after being approved by the People's Council at the same level". In what form and content will the People's Council approve it? If the People's Council has issued a Resolution approving the land price list, will the People's Committee's decision to issue the land price list be different from the Resolution of the People's Council?
Land price adjustment should only be regulated when there is a CPI fluctuation of 10% or more.
Concerned about this content, National Assembly Delegate Hoang Van Cuong said that the regulation that "land price list is built periodically every year" is not appropriate, causing increased costs and procedures when there is no fluctuation in land prices. At the same time, the delegates also noted that this regulation will make it impossible to adjust land prices in a timely manner in areas with high land prices. Therefore, it is not advisable to regulate the construction of a periodic land price list, but only to regulate adjustments when land prices fluctuate with the CPI index of 10% or more.
Need to clarify the content of 5 land valuation methods. Illustration photo.
Regarding the provisions on the Land Price Appraisal Council, the draft Law is stipulating in the following direction: The People's Committee issues the Land Price List, the Chairman of the People's Committee decides on specific land prices. The Department of Natural Resources and Environment will assist the People's Committee at the same level in organizing the development of the Land Price List and specific land prices. During the implementation process, the Department of Natural Resources and Environment will hire a land valuation consultancy organization to determine the Land Price List and specific land prices, and submit them to the Land Price Appraisal Council for appraisal before submitting them to the People's Committee at the same level for decision.
However, Article 157 stipulates that the Appraisal Council includes: the Chairman of the People's Committee as Chairman of the Council... and the land valuation consultancy organization. The standing members of the Finance and Budget Committee recognized that the above regulation on the composition of the Appraisal Council is unreasonable and does not ensure the principles of objectivity and independence as stated in Clause 1, Article 154 on the principles of land valuation.
Agreeing with the above viewpoint, National Assembly Delegate Nguyen Hoang Mai analyzed: “ The land valuation consultancy organization that provides the land price list and specific land prices is a member of the Land Valuation Council to appraise its own land valuation consultancy results. The Chairman of the People's Committee who decides on specific land prices is also the Chairman of the Land Valuation Council, which will not ensure objectivity when making decisions.”
Clause 6, Article 157 of the draft Land Law (amended) also stipulates that " The results of the land price appraisal of the Council are the basis for the competent authority to decide on the Land Price List and specific land prices" . This will not ensure the objectivity of the agency or person with the authority to decide on the land price list or decide on specific land prices. Regarding this content, it is proposed that regulations should be made to ensure a clear distinction between responsibilities and authorities in "price appraisal" and "pricing".
Thien An
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