State to collect US$4-5b per year from land

The Vietnamese Ministry of Finance estimates that the State will collect US$4-5 billion per year from land in the next 10 years.

This is the main content in the ministry’s under-construction project of financial resource development from land and state assets for social-economic development in 2011-2020 period.

The project consisting of two sub plans will be offered for discussion at a seminar to be held on March 24.

In Plan 1, according to the ministry, total state budget revenue from land (land using fee, land rental, non-agricultural land using taxes, taxes on land using right) is estimated at average 81.646 trillion dong per year.

In Plan 2, the total revenue is estimated at 98.624 trillion dong/year with the assumption that land price may surge 20% (excluding inflation) and increases in taxes on assets.

So, in line with both plan, the state budget estimates to have US$4-5 billion per year from land resource.

Increases in land source are expected to come from industrial land (up 128,000 hectares), urban land (+68,000 ha) and some other types of non-agricultural land (+210,000 ha) from now till 2020.

In 2002, the budgetary revenue from land was around 5.486 trillion dong, accounting for 4.4% of total revenues. By 2010, the revenue from land surged to 67.767 trillion dong, taking up 11.21%. - Source: Vietbiz24