Proposal to exempt land rent for investment incentive projects.

VTV.vn - At the 6th session of the Ho Chi Minh City People's Council, the City People's Committee proposed exempting land rent for production and business projects in industries and professions prioritized for investment.

According to a report from the Ho Chi Minh City People's Committee, from August 1, 2024, when the 2024 Land Law officially comes into effect, all mechanisms for exemption and reduction of land rent under the old regulations will cease. This leaves the city with no legal basis to apply preferential land rent rates to new investment projects, significantly impacting the investment and business environment.

To address this legal loophole, the Ho Chi Minh City People's Committee proposed issuing a new resolution offering the highest incentive: exemption from land rent for the entire lease period for production and business projects included in the list of encouraged investments, investments in special areas, or non-profit projects. These are projects that play a crucial role in developing production, creating jobs, and serving the common good of society.

In addition, the resolution also stipulates land rent exemption levels for a period of 20 years, 15 years or 10 years, depending on the specific area and industry. The list of areas and sectors enjoying incentives will be announced by the Ho Chi Minh City People's Committee to serve as a basis for unified application.

Vice Chairman of the Ho Chi Minh City People's Committee - Nguyen Loc Ha - presented the proposal.

For projects that have previously received incentives, the proposal clearly states the principle of continuity. Accordingly, land users with valid incentive decisions will continue to enjoy the old incentive level for the remaining period. If the incentive level under the new resolution is higher, the remaining incentive period will be adjusted according to the new regulations to ensure the rights of investors. However, projects whose incentive period expired before the resolution came into effect will not be eligible for this policy again.

A notable point is that the exempted land rent is not included in the cost of products and services. This regulation aims to ensure that preferential policies are used for the right purposes, avoiding businesses benefiting from the budget but passing the costs on to consumers.

The Ho Chi Minh City People's Committee assesses that the exemption of land rent will help businesses reduce input costs, maintain and expand production and business activities, thereby creating more jobs for workers. In the long term, this policy is expected to contribute to retaining existing investors and attracting more new projects in the context of increasingly fierce competition for investment attraction among localities.

Source: https://vtv.vn/de-xuat-mien-tien-thue-dat-voi-cac-du-an-uu-dai-dau-tu-100251209183044438.htm