Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

Reducing land rent to have more resources to support businesses and people to cope with difficulties and challenges in the coming time. Photo: H.Anh

According to the Ministry of Finance, reports from the Government and localities, ministries and branches show that the growth rate in the last 6 months of the year of the whole country and many localities is forecast to slow down.

GDP growth in the third quarter of 2024 of the whole country is forecast to decrease by 0.35%, and in the fourth quarter by 0.22% compared to the scenario without storm No. 3. The whole year's GDP is estimated to decrease by 0.15% compared to the previously proposed scenario (estimated growth could reach 6.8-7%).

In that context, the Ministry of Planning and Investment has proposed reducing land and water surface rents for subjects affected by storm No. 3 and storm circulation, floods, flash floods, etc.

To have more resources to support businesses and people to cope with difficulties and challenges in the coming time; At the same time, to promptly support localities affected by storm No. 3 Yagi, and to prepare for natural disaster scenarios that may affect many localities across the country, the Ministry of Finance submitted to the Government a Decree regulating the reduction of land rent in 2024 after receiving the approval of the National Assembly Standing Committee.

In the latest Draft, the Ministry of Finance continues to propose 2 options for reducing land rent with a reduction of 15% and 30% of the land rent payable in 2024.

However, after widely consulting with ministries, branches and localities, the Ministry of Finance proposed to choose option 2, reducing land rent by 30% in 2024 because this option is suitable for the new socio-economic developments of the whole country.

The land rent reduction is calculated on the land rent payable in 2024 according to the provisions of law. No reduction will be made on the outstanding land rent of years prior to 2024 and late payment (if any).

In case the land lessee is receiving a reduction in land rent according to regulations or/and deductions for compensation and site clearance according to the provisions of the law on land rent, the reduction in land rent will be calculated on the amount of land rent payable (if any) after being reduced or/and deducted according to the provisions of the law.

The subjects of application are organizations, units, enterprises, households and individuals who are being leased land by the State, directly according to the Decision or Contract or Certificate of land use rights, house ownership rights and other assets attached to the land of the competent state agency (calculated at the time the land lessee submits the application for land rent reduction according to regulations) in the form of annual land rent payment (hereinafter referred to as the land lessee).

This regulation applies to both cases where the land lessee is not eligible for exemption or reduction of land rent, and cases where the land lessee is receiving a reduction in land rent according to the provisions of the law on land (the Law and documents detailing the Law) and other relevant laws; competent authorities handling land rent reduction dossiers; other relevant agencies, organizations and individuals.