VCCI recommends reducing land rent for 26 localities higher than the general level.

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed reducing land lease fees for 26 localities that are higher than the general rate.

The Vietnam Chamber of Commerce and Industry (VCCI) is proposing a 30% reduction in land rent for businesses in 2024, a high figure compared to the Ministry of Finance 's proposals.

Choose the higher option.

In a letter sent to the Ministry of Finance to provide feedback on the draft Decree regulating the reduction of land rent for 2024 to promote production and business, the Vietnam Chamber 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 proposes a 15% reduction.

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

Specifically, in the first six months of the year, 60.4% of the projected revenue was collected, exceeding the same period last year by 16.42%. In the first seven months of the year, 72.65% of the projected revenue was collected, exceeding the same period last year by 19.09%; land and water surface lease fees reached 91.63% of the projected revenue.

The draft report also stated: “…the 2024 budget revenue forecast approved by the National Assembly will be met and exceeded; the reduction in land lease fees under this policy will not significantly affect overall budget revenue…”.

In addition, VCCI acknowledges that the policy of reducing land rent in the years from 2020 to 2023 has had a positive impact on the economy, helping businesses have more resources to recover production and business activities when affected by Covid.

"The land rent reduction from the previous year was 30% and was deemed reasonable. Therefore, we propose that the drafting agency choose option 2, applying a 30% reduction in land rent payable for 2024," VCCI suggested.

There are plans to reduce land lease fees further for 26 localities.

These are the areas most severely affected by Typhoon Yagi. VCCI recommends this.

A factory building of 1,800 m2 Vina Bigo Co., Ltd. (Hai Phong Japanese Industrial Park) After Typhoon Yagi

Businesses in these provinces and cities are in urgent need of support to quickly restore production and business activities. The government has also issued Resolution 143, which requires research into policies to exempt, reduce, and extend land and water surface lease fees for those affected and damaged by storms, floods, landslides, and other natural disasters.

This is the basis on which VCCI proposes that the drafting agency study a higher reduction in land lease fees for the 26 localities affected by the storm compared to the general reduction nationwide.

"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 a report by the Ministry of Planning and Investment at the online conference summarizing, evaluating, and drawing lessons from the government's work on preventing and mitigating the consequences of Typhoon No. 3 - Typhoon Yagi, the total estimated economic damage is over 81 trillion VND.
Of these, approximately 282,000 houses and 3,755 schools and school facilities were damaged, had their roofs blown off, were flooded, or were buried due to landslides.
Agriculture suffered damage to approximately 285,000 hectares of rice, crops, and fruit trees due to flooding; 189,982 hectares of forest; 11,832 aquaculture cages and rafts were damaged or swept away; and about 5.6 million livestock and poultry died.
Many infrastructure facilities collapsed or were damaged, such as transmission lines, substations, telecommunication towers, fiber optic cables, and BTS stations, resulting in loss of communication; 796 dike incidents occurred; 820 locations on national highways were blocked, and many provincial roads suffered landslides; 3,517 irrigation and water supply works were damaged...
The Ministry of Planning and Investment predicts that natural disasters could reduce the country's GDP growth by 0.35% in the third quarter and 0.22% in the fourth quarter compared to a scenario without typhoon No. 3.

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