VCCI proposes higher cuts link bet88 land rentals for Covid-hit businesses and individuals

The Ministry of Finance finished developing a draft decision for the National Assembly Standing Committee in early August that will promulgate solutions in State budget collection link bet88 support businesses and individuals affected by Covid-19. Compared with the Prime Minister’s Decision No. 22/2020/QD-TTg dated August 10, 2020, on reductions link bet88 land rentals in 2020 for those affected by Covid-19, the draft raises the reduction of payable land rentals from 15 per cent link bet88 30 per cent and adjusts certain regulations link bet88 support beneficiaries.

On August 10, however, the Vietnam Chamber of Commerce and Industry (VCCI) suggested raising the reduction on land rentals link bet88 50 per cent this year, in order link bet88 remove difficulties facing production and business. According link bet88 the drafting board, a reduction of 30 per cent would total some VND700 billion (.50 million), so a 50 per cent reduction would be in the order of VND1 trillion (.55 million).

“This [30 per cent] is not a significant reduction, especially as the Resolution from the National Assembly states that link bet88 reach annual economic growth goals, State budget revenue in 2021 is estimated link bet88 exceed VND42-72 trillion (.84-3.15 billion),” the VCCI emphasized. It therefore proposed the drafting board raise the reduction link bet88 50 per cent.

The VCCI also pointed out that under the provisions of Clause 2, Article 5 of the draft, the time limit for authorities link bet88 determine the amount of any reduction and issue a decision is counted from the time of receiving “complete and valid dossiers”. However, the draft does not stipulate the time limit for considering the validity of the dossier, which may make procedures less transparent. It proposed the drafting board stipulate this time limit as one working day from the date of receipt.

In addition, Clause 1, Article 5 stipulates that the application of land rental reductions must be submitted within the period from the effective date of the decision link bet88 December 31, 2021.However, the draft does not stipulate if this regulation is also applied link bet88 cases of tenants who were eligible for land rental reductions in 2020 under Decision No. 22 but failed link bet88 submit an application. The VCCI therefore proposed the Drafting Committee introduce clear regulations link bet88 ensure smooth implementation.