The draft of adjustment and supplementation of land tariffs has been sent to local and provincial departments for consultation, which has basically agreed on areas and routes that need to be adjusted so as to avoid excessive deviation from the actual standards. The land price table will be applied to calculate land tax or lease for production, business, trade and services.
Proper price adjustment
After thorough assessment, the PPC has basically agreed on the price adjustment for some types of land to avoid conflicts in the process of application. The current regulations on land price have some controversial shortcomings in the process of implementation including: the average price of non-agricultural land plots with great length at position 1 is lower than those at position 2 and 3 on same route. Therefore, the PPC will supplement the regulations by recalculating the land price for land plots in positions 2 and 3 to ensure equity. Land prices for production, business, trade, non-agricultural services will also be revised to avoid any shortcomings.
According to Decree 01/2017 / NĐ-CP dated 6-1-2017 of the Government, the land use term is increased from 50 years to 70 years, so the land rent payment in lump sum will be more volatile. In order not to affect the investment environment, the province is expected to adjust land prices by 20%. Thus, land for production, business and trade, services will be equivalent to 60% and 72% of the price of residential land. This is a relatively appropriate proportion of land prices compared to those applied in other provinces in the region.
Mr. Nguyen Ngoc Thuong, Deputy Director of the Department of Natural Resources and Environment, said: "Currently, Binh Duong province has adjusted the land price index applied to trade and service land with 70 year term of rent in rural areas which is equivalent to 80 % of rural land; land for production and business is adjusted equivalent to 70% of rural land. In urban areas, land for production, business, trade and services is equivalent to 65% of urban land. Ba Ria - Vung Tau province applies the price of land for production, business, trade and services in rural and urban areas which is equal to 60% of residential land. Dong Nai is expected to make an increase by 20% in accordance with the conditions of the province.
According to the proposal of Dong Nai Tax Department, it is advisable to apply the land price for 50 years to the 70-year lease term because the level of impact will not be high and the enterprises will have less inquiries.
Land price adjustment along some route
Since land prices along some routes of districts, towns, cities are not suitable with the reality, tbe PPC will make some proper adjustment. The land price along Ton Duc Thang road in Long Thanh district and the segment of route 13 from Dinh Quan district boundary to the 2000m-extension point will be adjusted; Vinh Cuu district proposes to adjust the land price along Ton Duc Thang road to Trang Bom district boundary ... In addition, PPC intends to adjust land prices along newly constructed or enlarged roads to ensure the level harmonization of land prices along related routes.
The price of cemetery land, funeral home and crematorium will be adjusted accordingly. According to the assessment of related departments, cemeteries, which are special, spiritual and long-term land types, should be calculated as high as the land price for production and business at position 3 and not less than the price of agricultural land for perennial crops at the same location. This land price adjustment and supplementation shall not apply to compensation prices but shall only be calculated for land tax or land rents for units or individuals in the provinces.
"The greatest obstacle in adjusting land prices this time is how to avoid affecting the land rent that enterprises have paid in lump sum. If it does not work well, it will affect the investment environment of the province, "said Le Van Thu, Deputy Director of the Department of Finance.
Vice Chairman of the provincial People's Committee Nguyen Quoc Hung agreed on the plan which will increase the land price by 20% because of the equivalence and consistence with the price of land in the provinces in the region, such as Binh Duong, Ba Ria - Vung Tau . "This time, the provincial People's Committee will adjust the land price in newly constructed, upgraded and expanded roads to catch up with the changes in land prices. The province aims to create favorable and fair land prices for investment attraction," Mr. Hung emphasized.
Currently, enterprises involved in land lease payment in lump sum, leasing land for production, business, trade and services in Dong Nai are expected the PPC to publish new land prices because they are directly related to the amount of payment they have to make.
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