HCM City municipal government is seeking solutions from the prime minister to deal with difficulties in collecting controversial land use fees at Phu My Hung urban area.
Many households have refused to pay land-use fees under the new tariffs
Many residents in Phu My Hung were shocked to find out that they had to pay a huge land use fee, twice or eight times higher than their evaluations.
Most of these households bought the houses before the Law on Real Estate was issued on July 1, 2006, but they were unable to register their land-use right at that time until two to three years later.
Although HCMC authorities have agreed to let the residents enjoy the fees in accordance with the contracts they signed in the past, which were lower than the new market-valued prices, this solution has failed to please all the customers.
The contracts signed before July 1, 2006 were not notarised, so the residents have had to re-sign the contract when the law was issued. The land use fees when their contract was notarised was already much higher than their original fees.
District 7’s Tax Department still has a huge amount of dossiers, causing problems for tax collection activities.
To completely resolve the issue, the city's authorities have proposed to the government to let residents who were unable to notarise their contract pay their taxes in accordance with the price ranges prior to July 1, 2006.
The authorities also proposed a solution to settle land use fees for the people who transferred house ownerships in Phu My Hung urban area without paying sufficient attention to land use rights.
If residents bought houses before Decree 181 was issued on November 16, 2004, they would only have to pay the tax in accordance with Resolution 112 issued in October 2002 by HCM City’s authorities.
If they bought their houses from November 16, 2004 to July 30, 2010, the land use fee would equal the fee they had to pay in accordance with current market prices minus the total land rental fee they paid.
