Proposal to exempt agricultural land use tax until the end of 2030

The Ministry of Finance has just completed a submission to the Government on the proposal to draft a National Assembly Resolution on agricultural land use tax exemption. In particular, the Ministry of Finance proposed two options on the duration of agricultural land use tax exemption.

The Ministry of Finance is leaning towards the option of continuing to implement the policy of exempting agricultural land use tax and the tax exemption period will be applied for 5 years to suit the reality of agricultural production, rural life and the socio -economic development orientation of the country.

The total amount of agricultural land use tax exempted and reduced in the period 2021 - 2023 is about 7,500 billion VND/year on average.

Specifically, the Ministry of Finance proposed to draft a resolution to extend the agricultural land use tax exemption period for 5 years, from January 1, 2026 to December 31, 2030.

According to the Ministry of Finance, continuing to implement tax exemption for a period of 5 years corresponds to and is consistent with the conditions of commitment on cooperation and association in production and consumption of agricultural products, contributing to supporting farmers in production and consumption of agricultural products.

If it is necessary to adjust tax policies for agricultural land, it will not greatly affect the interests of farmers.

Considering that with a 5-year incentive, it is difficult to attract long-term agricultural investment projects, in addition to the above plan, the Ministry of Finance proposed a plan to exempt agricultural land use tax for the next 10 years, from January 1, 2026 to January 1, 2036.

This option is considered by the Ministry of Finance to be unfeasible due to the unpredictable fluctuations of the world economic situation. If necessary, it will be difficult to adjust policies when tax policies are needed to regulate. In addition, the long tax exemption period will increase pressure on the state budget.

It is expected that the Government will propose to draft a resolution on this policy and submit it to the National Assembly Standing Committee for consideration and approval of the proposal to add the resolution to the 2025 Law and Ordinance Development Program in September. The Government will submit the resolution to the National Assembly for comments and approval at the 9th session of the 15th National Assembly (May 2025).

According to the Ministry of Finance, 20 years of implementing the policy of exemption and reduction of agricultural land use tax has contributed to improving and enhancing farmers' lives, creating jobs for rural areas, encouraging farmers to be more attached to the land, confidently investing in agricultural production, contributing to enhancing the competitiveness of agricultural products in the market in the context of international economic integration...

The total amount of agricultural land use tax exempted and reduced in the years 2003 - 2010 is about 3,268.5 billion VND/year on average; from 2011 - 2016 is about 6,308.3 billion VND/year on average; from 2017 - 2018 and until the end of 2020 is about 7,438.5 billion VND/year; from 2021 - 2023 is about 7,500 billion VND/year on average.

Source: https://thanhnien.vn/de-xuat-mien-thue-su-dung-dat-nong-nghiep-den-het-2030-185240702195023963.htm