Proposal to exempt agricultural land use tax for 10 years

DNVN - Commenting on the Draft Regulation on extending the period of exemption from agricultural land use tax, VCCI agrees with the necessity of continuing the policy of exemption from agricultural land use tax, and at the same time proposes to choose the option of 10-year exemption from agricultural land use tax.

Currently, the Ministry of Finance is preparing a dossier to propose the development of a National Assembly Resolution on exemption of agricultural land use tax (Draft) and to collect opinions from affected subjects.

This draft stipulates the extension of the exemption period for agricultural land use tax until December 31, 2030. It is expected that the document will affect organizations and enterprises engaged in agricultural production, aquaculture, research and experimentation on agriculture, forestry, salt production, etc.

According to the Ministry of Finance, the proposal to develop the Draft aims to institutionalize the Party and State's policies and viewpoints on agriculture, farmers, and rural areas.

At the same time, encourage organizations and individuals to invest in agriculture, farmers and rural areas, contributing to restructuring the agricultural sector and further increasing the value of agricultural products. Thereby, enhancing the competitiveness of agricultural products in the context of international integration; continue to promote the results achieved by the policy of exemption of agricultural land use tax.

VCCI believes that it is necessary to continue the policy of exempting agricultural land use tax.

Regarding the period of exemption from agricultural land use tax, the Ministry of Finance proposed two solutions.

Solution 1: stipulate the period of exemption from agricultural land use tax is 5 years. Accordingly, agricultural land use tax will continue to be exempted from January 1, 2026 to December 31, 2030.

Solution 2: stipulate the period of exemption from agricultural land use tax as 10 years, which means continuing to exempt agricultural land use tax from January 1, 2026 to December 31, 2035.

To ensure the goal is consistent with the Party and State's viewpoints and policies on agriculture, farmers, rural areas and the practical socio-economic situation, in the draft, the Ministry of Finance proposes to implement solution 1 (the period of exemption from agricultural land use tax is 5 years).

Commenting on this Draft, the Vietnam Federation of Commerce and Industry (VCCI) said that VCCI agrees with the necessity of continuing the policy of exempting agricultural land use tax.

According to VCCI, this policy has been implemented continuously for more than two decades and has brought many positive impacts to agricultural production as well as the fight against poverty in Vietnam. If we restart the collection of agricultural land use tax now, it will take a lot of time and effort for the procedures to determine the tax amount as well as the collection and payment, while the tax collected accounts for a very small proportion of the total budget revenue.

Regarding the two tax exemption period options of 5 years and 10 years, VCCI recommends choosing the 10-year tax exemption option to ensure policy stability.

"Currently, many businesses are tending to invest in large-scale agricultural production, linking domestic and export value chains, and applying high technology in agriculture. These investment projects require large amounts of capital and long payback periods, so policy stability is needed so that businesses can confidently plan their production and business activities," VCCI analyzed.

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Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/kien-nghi-mien-thue-su-dung-dat-nong-nghiep-10-nam/20240714093607813