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Jan 17, 2023 / 13:56

Vietnam proposed 30% cut in land lease in 2023

Last year, a similar cut caused the state to miss out on VND3.5 trillion (US$150 million) in revenues.

The Ministry of Finance (MoF) has proposed the Government extend a 30% of reduction in land leases for companies, commercial households, and individuals in 2023.

 Locals pay taxes at an administrative agency in Hanoi. File photo

The measure is part of the Ministry of Finance's proposal on tax breaks for companies this year, subject to the Prime Minister's approval.

According to the finance ministry, such tax reliefs are necessary amid a challenging economic environment and businesses have found it hard to access banks’ loans, especially those in fields of real estate, agriculture, or mining.

The ministry, therefore, proposed the extension of land rental fee reduction by 30% for businesses in 2023.

Last year, a similar cut resulted in the state foregoing a revenue of VND3.5 trillion (US$150 million) but provided much-needed assistance to businesses and individuals affected by Covid-19 and the early resumption of business activities in the post-pandemic period.

During the Government’s monthly meeting in January, Vice Minister of Finance Nguyen Duc Chi said the ministry would continue supporting its measures for the economy in 2023 regarding taxes and fees reduction.

In 2022, the MoF decided to cut the value-added tax from 10% to 8% and extended and waived the payment of taxes and fees worth a total of VND233 trillion ($9.94 billion).