VCCI has recently commented on the Draft Decree concerning the reduction of land lease fees for 2024, aimed at promoting production and business as requested by the Ministry of Finance.

Specifically, the draft presents two options for the reduction of land lease fees. Option 1 proposes a 15% reduction for 2024, while Option 2 suggests a 30% reduction.

The draft presentation also indicates a very optimistic revenue collection situation for 2024. 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, 72.65% of the projected revenue was collected, surpassing the same period last year by 19.09%; land lease and water surface lease fees reached 91.63% of the projections.

Additionally, the presentation notes: "The projected revenue for 2024 approved by the National Assembly is expected to meet or exceed targets; the reduction in land lease fees under this policy will not significantly affect overall budget revenue."

VCCI assesses that the policy of reducing land lease fees from 2020 to 2023 has had a positive impact on the economy, providing businesses with additional resources to recover production amid the effects of COVID-19. "The reduction of 30% in land lease fees last year was deemed reasonable."

Accordingly, VCCI has recommended selecting the option of applying a 30% reduction in land lease fees for the year 2024.

Regarding the reduction of land lease fees for 26 localities affected by typhoon Yagi, VCCI believes that the damage caused by Typhoon Yagi to the 26 northern provinces is extremely severe. Businesses in these cities are in urgent need of support to quickly recover their production and operations. The government has also issued Resolution 143, which requires research into policies for waiving, reducing, or extending land lease and water surface lease fees for those affected by storms, floods, and landslides.

Therefore, VCCI has proposed studying a higher reduction in land lease fees for the 26 localities affected by the typhoon compared to the general reduction nationwide. "This policy will help businesses in these regions gain additional resources to restore production and operations, create jobs, and prepare benefits for workers ahead of the upcoming Tet holiday," VCCI emphasized.

According to calculations by the Ministry of Finance, if the aforementioned decree is approved, the revenue from land lease fees could decrease by approximately 2,000 to 4,000 billion VND. However, authorities believe that this will not significantly affect total state budget revenue. On the other hand, reducing land lease fees will greatly impact the recovery and development of production and business for organizations, individuals, households, and companies, thereby increasing tax revenues to offset the losses from reduced land lease fees.

In fact, this is not the first time a land lease fee reduction policy has been applied. Previously, to alleviate difficulties caused by the COVID-19 pandemic and to contribute to the recovery and development of the socio-economic sector, the Ministry of Finance presented decisions to the Prime Minister regarding the reduction of land lease fees for the years 2020 and 2022.

During the period from 2020 to 2023, the average reduction in land and water surface lease fees was 2,890 billion VND per year, while the average for the years 2021-2023 reached 3,734 billion VND per year. This has contributed to supporting businesses, organizations, units, households, and individuals in quickly restoring production and operations after the pandemic.