A farm in Mộc Châu, Sơn La. The Ministry of Finance has proposed reductions of land rental fees by up to 30 per cent in 2024 which will help businesses to save around VNĐ4 trillion (US$162.57 million). — VNA/VNS Photo Trần Việt

The Ministry of Finance has proposed reductions of land rental fees by up to 30 per cent over the remainder of the year which will help businesses to save around VNĐ4 trillion (US$162.57 million).

Under the draft decree on reducing land rental fees in 2024, the ministry proposed two reduction rates, by 15 per cent or 30 per cent, aiming to support enterprises and the people to overcome difficulties caused by the impact of the natural resources and unfavourable economic conditions.

Organisations, enterprises, households and individuals who are renting land directly from the Government can submit applications for the reductions.

The ministry estimates that the policy might cause a reduction from VNĐ2-VNĐ4 trillion to the State budget, but the impact would not be significant because the reduction can be made up from other taxes as the production and business would recover.

In 2020-23, on average, around VNĐ2.9 trillion in land rental fees was reduced per year. — VNS