All members of the National Assembly Standing Committee voiced support for the Government’s proposal on the initiative, during their ongoing session in Hanoi on March 11.

According to Deputy Minister of Finance Bui Van Khang, in recent years, the government has issued decrees reducing land rent from 2020 to 2023 to help mitigate difficulties caused by the COVID-19 pandemic and support economic recovery and development.

The amount of land rent reduced under the Prime Minister’s decisions between 2020 and 2023 averaged VND 2.89 trillion per year, while from 2021 to 2023, the annual reduction increased to VND 3.734 trillion. These reductions have supported businesses, organizations, households, and individuals in their production and business activities.

Considering the ongoing domestic and international economic challenges, the government has proposed a 30% land rent reduction for 2024 to provide additional support to businesses and individuals facing difficulties while also assisting organizations and individuals affected by natural disasters and climate change.

Khang revealed, the projected land rent reduction under the new decree amounts to VND 4 trillion, equivalent to the reduction in 2023, and represents approximately 0.26% of the total annual state budget revenue.

While this reduction will not significantly impact overall state revenue, it will play a crucial role in business recovery and development, and this, in turn, will increase tax revenues, such as personal income tax and corporate income tax, helping offset the revenue loss from land rent reductions, he said.

Overseeing the proposal, Phan Van Mai, chairman of the National Assembly’s Economic and Financial Committee, requested the government to clarify the impact of reduced state budget revenue and how this policy would be managed beyond 2024, particularly in 2025.

Some Committee members suggested that the government should clarify whether this policy will continue in subsequent years, to help avoid repeated proposals for similar policies, which involve complex procedures and lengthy approval processes, ultimately reducing policy effectiveness.

In 2023, 29,734 organizations and individuals benefited from the land rent reduction policy, including 23,487 businesses and 6,247 households and individuals. The total land rent reduction in 2023 was approximately VND 4 trillion.

In response, Khang stated that the Government has requested the National Assembly Standing Committee to grant it the authority, starting in 2025, to decide on land rent exemptions and reductions based on actual economic conditions and the needs of businesses and citizens.

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