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| Strictly deal with land-related debts |
Land use fee collection has dropped dramatically
According to the General Department of Taxation statistics, in the first eight months of 2023, 36 out of 63 localities had revenue progress of less than 68% compared to the estimate; 6 out of 20 revenues reached less than 68% compared to the estimate, including land-related revenues. In particular, the estimated land use fee collection was 42.2%; and estimated land rental and water surface rental reached 63.2% in the first eight months of 2023.
Report on the progress of land use levy collection in Bac Ninh shows that in the first eight months of 2023, the Bac Ninh Tax Department collected 174 billion VND in land use levy, reaching 5.8% of the estimate, a 15.5% increase over the same period last year. Nguyen Huu Truong, Deputy Director of the Bac Ninh Tax Department, explained that since the end of 2022, no new auction projects have arisen in the area, the main revenue from debt collection of outstanding projects from the previous year has been transferred to and from land use right recognition decisions that have arisen, resulting in a significant decrease in the amount of land use fee collection.
According to the report, by August 2023, the collection of land use fees in Thai Nguyen province was only 734.7 billion VND, representing 15.3% of the province's estimate; the collection of land rent reached 296 billion VND, accounting for 42.3% of the province's estimate. According to the Thai Nguyen Tax Department's notice, the amount of land use with notice of debt is 681 billion VND, and the amount of land rent with notice of debt is 94.8 billion VND in 14 residential and urban projects.
In Thanh Hoa, revenue from land use decreased by 68.1% in the first eight months of 2023, resulting in a 50% decrease in Thanh Hoa province's state budget revenue over the same period last year. Similarly, according to the Ninh Binh Tax Department, the collection of land use fees in the area was 534.7 billion VND in the first eight months of 2023, constituting 17.8% of the estimate assigned by the Provincial People's Council and equaling 49.4% over the same period of implementation.
In Ha Nam, a leader of the Ha Nam Tax Department demonstrated that the collection of land use fees was lower than in previous years due to the freezing of the real estate market and falling prices. Some investment projects have not ensured their progress due to problematic site clearance, and the sluggish implementation of land use right auction, resulting in slow progress of land use levy collection.
Increase revenue by advising on project auctions
In the face of a sharp decline in land revenues, tax authorities at all levels are collaborating with functional agencies to collect land sources into the state budget on time.
In Thai Nguyen, the Chairman of the Thai Nguyen Provincial People's Committee requested that heads of departments, agencies, branches, and chairmen of People's Committees of districts and cities urgently and drastically carry out several tasks to continue synchronously implementing solutions to urge the recovery of debts related to land use fees and land rents in the province, while also striving to perform state budget collection tasks to achieve the best results.
The Provincial People's Committee Chairman of Thai Nguyen has assigned the Thai Nguyen Tax Department to oversee and direct subordinate units to closely monitor the progress of handling debts related to land use and land rent in the province; to report on the situation of handling debts related to land use and land rent on a regular basis; to summarize challenges and problems that arise during the implementation process; and to report and advise the Provincial People's Committee to take into consideration and take appropriate action.
In Bac Ninh, Mr. Nguyen Huu Truong, Deputy Director of the Bac Ninh Tax Department, stated that to complete the assigned budget collection tasks in 2023, the tax department not only proactively collects arising tax sources into the State budget but also actively proposes to the Party and People's Committee at all levels solutions on policy mechanisms and administrative procedures reform in order to improve the investment environment, support enterprises, promote production and economic growth, and create revenue sources for the State budget.
Furthermore, the Bac Ninh Tax Department must actively coordinate with provincial functional branches to advise the Provincial People's Committee on how to resolve the procedures for dossiers to bring completed projects to organize auctions under regulations, increase land use fee revenue, and ensure the completion of the year plan.
To ensure the budget collection plan from land use fees, the People's Committee of Ha Nam province has directed branches and localities to strengthen propaganda, dissemination, and consensus among the people when handing over the ground for projects. Localities should recognize people's actual needs, complete new residential areas quickly, and submit to competent authorities for consideration and supplementation of planning to auction land use rights.
