HCMC – The National Assembly (NA) Standing Committee has approved a Government plan to cut land rental fees by 30% for all land users for 2024, extending relief measures introduced in previous years.
Deputy Finance Minister Bui Van Khang said at a meeting on March 11 that similar reductions had been implemented since 2020 to help businesses and individuals cope with the financial strain caused by the Covid-19 pandemic. These measures have annually lowered land rent expenses by VND2.89 trillion to VND3.73 trillion.
For 2024, the cut is expected to lower land rental fees by around VND4 trillion, equivalent to 0.26% of the country’s annual budget revenue. While this accounts for a relatively small portion of state income, the policy aims to ease financial burdens on businesses and households, potentially boosting future tax revenues.
Most members of the NA’s Economic-Financial Committee supported the extension, recognizing ongoing economic challenges. However, they urged the Government to assess the policy’s long-term impact on state revenue and clarify whether the relief measures would continue beyond 2024.
According to the Ministry of Finance, over 29,700 organizations and individuals, mostly businesses, benefited from the land rent reductions in 2023. The 2024 policy will not affect those who have yet to pay their fees, as the deadline has been extended to December 31. Those who have already paid will receive a credit toward future obligations.
The Government has also asked for authority to adjust land rent reductions from 2025 onward based on economic conditions. With approval from the NA Standing Committee, the Government is set to issue a decree formalizing the 30% land rent cut for 2024.
