VCCI proposes to reduce land rent for 26 localities higher than the general level

The 2024 land rent reduction for businesses being proposed by VCCI is 30%, the highest option among the proposals of the Ministry of Finance.

Choose the high option

In an Official Dispatch sent to the Ministry of Finance to provide 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) proposed choosing the high option, with a 30% reduction in land rent payable in 2024.

The remaining option in the Draft has a reduction of 15%.

According to VCCI's explanation, the very positive budget revenue situation in 2024 is one of the bases for giving a high reduction for businesses.

Specifically, in the first 6 months of the year, 60.4% of the estimate was collected, exceeding 16.42% over the same period. In the first 7 months of the year, 72.65% of the estimate was collected, exceeding 19.09% over the same period; land rent and water surface rent reached 91.63% of the estimate.

The Draft also stated: “…the 2024 budget revenue estimate approved by the National Assembly will be met and exceeded; the land rent reduction under this policy will not significantly affect the overall budget revenue…”.

In addition, VCCI reviewed the land rent reduction policy from 2020 to 2023, which has had a positive impact on the economy, helping businesses have more resources to restore production and business when affected by Covid.

“The land rent reduction of last year was 30% and is considered reasonable. Therefore, we suggest that the drafting agency choose option 2, applying a 30% reduction in land rent payable for 2024,” VCCI proposed.

There is a plan to reduce higher land rents for 26 localities.

These are the localities heavily affected by storm Yagi. VCCI recommends.

1,800 m2 factory Vina Bigo Company Limited (Hai Phong Japanese Industrial Park) after typhoon Yagi

Enterprises in these provinces and cities are in dire need of support to quickly 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.

This is the basis for VCCI to propose that the drafting agency study the land rent reduction for 26 localities affected by the storm 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,” VCCI explained the reason for the proposal.

According to the report of the Ministry of Planning and Investment at the online conference to review, evaluate and draw lessons from the Government's work to prevent and overcome the consequences of storm No. 3 - storm Yagi, the total economic damage is preliminarily estimated at over 81 trillion VND.
Of these, about 282,000 houses and 3,755 schools and school sites were damaged, had their roofs blown off, were flooded or buried due to landslides.
Agriculture suffered about 285,000 hectares of rice, crops, and fruit trees flooded and damaged; 189,982 hectares of forest; 11,832 aquaculture cages damaged and swept away; about 5.6 million livestock and poultry died.
Many infrastructure works collapsed and were damaged, such as transmission lines, transformer stations, telecommunication poles, fiber optic cables, BTS stations lost contact; 796 dike incidents occurred; 820 locations on national highways were blocked and many intra-provincial roads were eroded, 3,517 irrigation and water supply works were damaged...
The Ministry of Planning and Investment assessed that natural disasters could cause the country's GDP growth in the third quarter to decrease by 0.35% and in the fourth quarter by 0.22% compared to the scenario without storm No. 3.

Source: https://baodautu.vn/vcci-kien-nghi-giam-tien-thue-dat-cho-26-dia-phuong-cao-hon-muc-chung-d226390.html