The proposal is part of a draft decree on land use fees and land rent, aimed at resolving issues in the implementation of the Land Law.

Specifically, when households and individuals convert agricultural land to residential land within the allocated limit, they would only pay 30% of the difference between the price of residential land and agricultural land.

For land exceeding the limit but not more than one time the allocated limit, individuals would pay 50% of the difference. If the converted area exceeds one time the allocated limit, the payment would be the full difference between the price of agricultural land and residential land, as currently regulated.

This preferential policy would apply only once per household or individual. Subsequent conversions for other purposes would require payment of 100% of the difference.

Previously, when converting agricultural land to residential land, individuals only paid land use fees calculated as a percentage of the difference between residential and agricultural land prices. The rate was 30% for areas within the limit and 50% for areas exceeding the limit. This allowed many households, especially in rural or suburban areas, to easily convert garden and pond land adjacent to their homes into residential land at a reasonable cost.

With the implementation of the Land Law 2024, this regulation was abolished. Individuals are now required to pay the entire difference between the price of agricultural land and residential land. They no longer receive the percentage reduction as before, even if houses have long existed on the land.

Additionally, many localities have urged the Ministry of Finance to address the issue of significantly increased land price tables in their areas. This has led to higher land use fees for residents, in some cases several times higher than before. This situation creates difficulties for many families in legalizing residential land, especially given the high demand for household separation and new home construction.

Recognizing this as an urgent issue directly related to social welfare and the housing needs of the people, the Ministry of Finance believes that a policy solution is needed soon, even before the Land Law 2024 undergoes amendments.

The draft resolution is expected to be approved in September and will be effective from the date of signing until 28/2/2027.

Earlier, at a meeting in early August, Deputy Prime Minister Tran Hong Ha requested amendments to land use fee regulations to ensure fairness and ease the burden on the people, avoiding complications when revising the Land Law. He emphasized that the revenue collected from land use purpose conversion must have a clear basis, clarifying the reasons for collection and any proposed reductions. He also called for a clear division of responsibilities among the State, businesses, and for avoiding the waste of land resources.

Phuong Dung