So there should be differentiation instead of "leveling"
With the proposal to reduce land rent by 30%, the Ministry of Finance expects this to be one of the measures to support businesses, contributing to the implementation of the 8% growth target set by the Government.
However, the question is whether this decline is strong enough to create strong momentum. According to the expert's analysis, this policy needs to be adjusted to bring higher efficiency.
Mr. Nguyen Quang Huy - CEO of the Faculty of Finance - Banking, Nguyen Trai University, commented that the proposal to reduce land rent by 30% is reasonable in the context of businesses still facing many financial difficulties and increased operating costs.
The nature of reducing land rent is part of the Government's fiscal support package to help businesses recover after the pandemic and other economic difficulties. In recent times, legal adjustments related to the Land Law and regulations related to real estate have caused land rental prices to increase significantly, causing great financial pressure for many businesses. Therefore, reducing land rent not only helps reduce costs but also contributes to creating motivation for businesses to reinvest and expand production, said Mr. Huy.
According to Mr. Huy, instead of applying a general 30% discount to all businesses, it is possible to consider differentiating the discount based on specific criteria.
We should prioritize higher reductions for businesses that have contributed positively to the sustainable development of the economy, such as technology businesses, businesses implementing digital transformation, green transformation businesses, exporters or manufacturers in the global supply chain. These businesses can even reduce by 50%. For normal businesses, the reduction can range from 12-20%. This will help avoid equalization and create incentives for businesses to invest in areas with higher added value, said Mr. Huy.
Need for additional subsidiary policies to support businesses
Mr. Huy also said that reducing land rent is only a part of the overall policy to support businesses. More importantly, there should be additional measures such as supporting preferential loans, exempting and reducing corporate income tax or extending the tax payment period so that businesses have enough resources for reinvestment. Administrative procedures also need to be improved to help businesses access support policies more quickly and conveniently.
For the land rental reduction policy to be most effective, there needs to be a synchronous combination of different support measures. The Government can implement preferential interest rate programs for enterprises leasing land from the State to reinvest in production and business. Combining the policy of reducing land rent with measures to exempt and reduce corporate income tax will help businesses have more resources for development.
