Anti-corruption Council wants new provision on payment of fee for building land

The Anti-corruption Council asked the Government of Serbia to put out of effect as soon as possible the provision that determines the fee on the basis of conversion of the right to use of building land into the ownership right.

In the letters to Prime Minister Mirko Cvetković, the ministers of finance and spatial planning, Diana Dragutinović and Oliver Dulić, the Anti-corruption Council points out that that provision is "unconstitutional, inconsistent with the Law on Planning and Construction and harmful to economy".

The Council suggests that the Government should adopt new provision in accordance with the Constitution and the Law by determining the fee for conversion of the right to use of building land into the ownership right in the way that the market value of building land is reduced by the amount of real costs of acquiring the right to use of land.

- The real costs can be the value of the right to use of building land if it was registered in the accounting or in the elaborate on appraisal of the company's value, based on which it is privatized - said the people from the Council.

The market value should also be reduced by the amount of possible expenditures that the applicant had in the period from the moment he acquired the right to use of land to the moment he submitted the application for conversion.

The Council points out that the Government's obligation was to clearly define which costs of land procurement were admitted and the way in which their amount was determined.

The Law does not stipulate that the costs of procurement of land are equal to the price of capital and the property, so that that can not be stipulated by the Provision either.