DECREES:

Article 1.- The following Clauses 3 and 4 shall be supplemented to Article 1 of Decree No.89-CP of July 17, 1994 of the Government on the collection of the land use levy and land administration fee:

3. In case the State recovers land from organizations, households or individuals using land and allocates such land to other organizations, the collection of land use levy from the organizations which are allocated land by the State is stipulated as follows:

If the organizations which are allocated land by the State have to pay compensations for the loss of land to the organizations, households or individuals whose land is recovered, the land use levy to be remitted to the State budget shall discount the compensations but the maximum discount shall not exceed 60% of the remitted land use levy.

The specific discounts shall be determined by the People�s Committees of the provinces and cities directly under the Central Government or decided on a case-by-case basis depending on the land locations and actual compensations to the persons whose land is recovered.

The prices for the calculation of land use levy are set in the local land price indexes in conformity with the land price bracket set by the Government.

The Ministry of Finance and the General Land Administration shall guide the localities in the implementation.

4. In case the collection of land use levy is conducted in the form of land auctions, the proceeds therefrom to be remitted to the State budget shall discount the expenses on the ground leveling and clearance and the building of infrastructure works which do not derive from the State budget, but the remitted proceeds from the land auctions must not be lower than the land prices set in the local land price indexes in conformity with the land price bracket set by the Government.

Article 2.- This Decree takes effect from the date of its promulgation.

Article 3.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People�s Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

TRAN DUC LUONG