Responding to the Official Dispatch of the Ministry of Finance requesting comments on the Draft Decree regulating the reduction of land rent in 2024 to promote production and business, the Vietnam Federation of Commerce and Industry (VCCI), after consulting with businesses and experts, gave some opinions.

Regarding the general reduction in land rent nationwide, the draft proposes two options for reducing land tax payable in 2024 at 15% and 30%.

According to VCCI, the land rent reduction policy from 2020 to 2023 has had a positive impact on the economy, helping businesses have more resources to recover production and business when affected by Covid. The land rent reduction of the previous year was 30% and is considered reasonable.

Therefore, VCCI proposed that the drafting agency choose option 2, applying a 30% reduction in land rent payable for 2024.

In addition, VCCI also gave opinions on the reduction of land rent for 26 localities affected by storm Yagi.

VCCI found that the damage caused by the recent Typhoon Yagi to 26 northern localities was extremely severe. Enterprises in these provinces and cities are in dire need of support to soon recover production and business. The Government has also issued Resolution 143, which requires research into policies to exempt, reduce, and extend land and water surface rents for those affected by storms, floods, landslides, and landslides.

Therefore, it is recommended that the drafting agency study the land rent reduction for the 26 localities affected by the storm to be higher than the general reduction of the whole country. The policy will help businesses in these localities have more resources to restore production and business, create jobs and prepare welfare for workers for the upcoming Tet holiday.