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Lower land-use fees help City homeowners

Update: May, 18/2013 - 10:42

HCM CITY (VNS)— Lower land-use fees will help residents in HCM City become homeowners and have better access to land-use right certificates, according to a source from the city's People's Committee.

The decision to reduce land-use fees was made at the 99th meeting of the HCM City Party Committee's Standing Board held on Thursday.

Under the decision, the land-price adjustment would affect people who apply to the State for land-use rights' recognition and to those who want to transfer land-use for other purposes.

The new land-use fees will be cut by 50 to 70 per cent, depending on the district. Adjustments will be made in all districts at the same time.

The new adjustment will not be applied to those who have already paid the land-use fee under the former regulations in Decision 28/2012/QD-UBND on applying for certificates of land-use rights.

However, the new regulation will apply to people who have already applied for certificates of land-use rights and have received the documents, but have not paid the land-use fee.

The new land-use adjustment fee is much lower than the previous one in HCM City.

A report from the Party Committee's Standing Board said the city's old coefficient rate of 3.5-4.5 on land-use fees, which were set out in Decision 28, were too high.

The fees are beyond the financial capacity of local residents, it said.

More than 6,000 applications for certificates of land-use rights (known informally as the "red book") have not been handed out because the applicants could not afford the fee.

An official of the city's Department of Natural Resources and Environment said the city was having problems collecting the land-use fees, while the work has been going smoothly in other cities and provinces.

The HCM City coefficient used for the land-use fee is 4.5, while Ha Noi's is only 1.5, he said.

"The city's new co-efficient is still higher than many other localities," he added.

A representative of the city's People's Committee, Dao Thi Huong Lan, said that, as of May 15, the city's incomplete data showed that land-use fees of VND525 billion (US$25.2 million) had been collected from 11,000 applications on land-use rights.

At least 3,337 applicants had not paid land-use fees, worth a total of VND1.2 trillion (US$57.6 million).

More than 350 of these applications were withdrawn because of high fees, Lan said.

A representative of the District 3's authority, who declined to be named, said that the district still had 1,800 applications that need more legal papers, but only a few cases were prepared to submit the necessary documents.

Land-use fees have reached millions of dong and even more than 1 billion, far beyond the reach of most people.

Many residents do not want certificates of land-use rights because they have no plans to transfer houses or land, according to the District 3 representative.

The slow process of granting land-use right certificates has not only affected local people's interests but also limited the local authority's property management work as well as revenue for the State budget.

With the new land-rice coefficient rate, HCM City residents' land-use fees will drop significantly, and as a result, more land-use certificates will be granted, the official said. — VNS


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