Ministry of Finance continues to propose exemption of agricultural land use tax

After 20 years of implementing the policy of exemption and reduction of agricultural land tax, farmers' lives have improved. They feel secure in investing in agricultural production, and employment in rural areas has also improved.

In the official dispatch seeking comments on the draft Resolution of the National Assembly on exemption of agricultural land use tax, the Ministry of Finance continues to propose that the Government submit to the National Assembly a Resolution to extend this tax exemption period until the end of 2030. If approved, this Resolution will take effect from January 1, 2026.

According to the Ministry of Finance, the amount of land tax reduction and exemption averaged over 3,268 billion VND per year, in the period 2003-2010. This amount nearly doubled, to 6,308 billion VND per year in the following 6 years. In the past 3 years, the amount of agricultural land tax exemption was about 7,500 billion VND per year.

Tax exemption reduces state budget revenue. However, according to the Ministry of Finance, this solution encourages investment and sustainable agricultural economic development, in line with the context of international integration. This helps increase the competitiveness of agricultural products in the context of international integration.

According to the agency, this tax exemption does not cause conflicts in trade relations with other countries, nor does it violate Vietnam's international commitments when joining the WTO. In fact, the tax exemption has not caused any problems in the past. Localities all believe that continuing this policy for the next phase is necessary.

"This is a form of direct financial investment support for the agricultural sector to improve productivity and product quality," the Ministry of Finance stated, adding that extending the tax exemption period is consistent with the 5-year socio-economic development strategy and the overall planning for agricultural production development.

VN (according to VnExpress)

Source: https://baohaiduong.vn/bo-tai-chinh-tiep-tuc-de-xuat-mien-thue-su-dung-dat-nong-nghiep-401135.html