Unsynchronized land prices incur hefty losses to State budget
By Trung Ngoc
August 15, 2017 | 01:56 PM GMT+7
The land prices promulgated by the People's Committees of provinces and cities are far different from the actual transaction prices on the market and such a practical swing is resulting in shortcomings and corruption to incur losses to the State budget.
Land price list is not close to the market price, causing huge losses. Photo: Thanh Nien
The leader of an enterprise said that while the land use levies for enterprises are calculated based on the market prices, the residents pay land use levies based on the applicable land price list when they change their land use purposes.
Because the land use levies for enterprises are calculated based on the market prices, they must be evaluated. This process is both time-consuming and bothersome.
Specifically, a valuation company investigates and determines the land prices subject to the market prices. Then, the Department of Natural Resources and Environment and the Department of Finance re-valuate the land prices and submit to the valuation board for review and approval.
Lawyer Tran Duc Phuong said that when valuating land use levies for enterprises, the competent authorities also "look at" the land price list promulgated by the People's Committees of provinces and cities. However, the huge difference between market price and land price list makes the valuation and determination of land use levies usually inaccurate.
The land use levies, which are expected by the enterprises, are far different from those calculated by the State. This arises conflicts, even facilitates corruptions. There are many cases where the enterprises solicit to get the minimum land use levies as many as possible. Accordingly, the different amount is usually divided to the enterprises and valuation company.
Phuong proposed that it is important to set the land price list in accordance with the market prices. Accordingly, all transactions of real estate must be paid through banks for transparency and easy determination of the real value of the land.
Dinh The Hien, economic expert agreed, saying that it is unable to fix the land prices because they fluctuate continuously. The land prices can be adjusted every two years. The most basic formula of land valuation is based on the average price of real estate rent and exploitation in that area for less fluctuation.
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