Tax exemption for agricultural land use to boost production

In the discussion at the session on 25/5/2020 relating to the Nation Assembly’s resolution to extend the exemption, reduction period for the agricultural land use tax till 2025, the delegates agreed on the continued implementation of tax exemption and reduction policy but it is necessary to have mechanisms for this so as to enhance the effect of promoting agricultural economics and rural development.

At the National Assembly session, the members discussed, commented on documents submitted by the Government on the Resolution of tax exemption for agricultural land use in the period of 2021 – 2025, the majority of members scattered and emphasized the need to issue this Resolution in order to support agricultural production and promote rural development.

The continuing tax exemption for farmland use until the end of 2025 will not reduce the state budget since this policy is being carried out in reality. The exemption tax amount of about 7,500 billion/ year will continue to be direct support for agricultural production organizations and individuals.

Tax exemption and reduction of land use policy is a solution that has big and significant impact, contributing to the implementation of the Party and the State directives for agriculture, farmers and rural development in each period; directly support farmers, encourage organization and individuals to invest in agriculture and rural areas. However, according to the explanation of Finance Minister Dinh Tien Dung at the discussion session, for the period from 2026 onwards, it is necessary to have an impact assessment in the overall property tax policies relating to real estate in order to propose a general tax policy for guaranteed property in accordance with socio-economic situation and feasibility for reinforcement.