Effective agricultural extension measures

Workers at the DELCO high-tech agricultural farm in Nguyet Duc commune (Thuan Thanh, Bac Ninh) harvest melons grown in a greenhouse. Source: baobacninh.vn

As an economic sector that plays an important role in the economy, over the past time, we have had many policies to develop the agricultural sector, including the policy of exemption and reduction of agricultural land use tax. According to the Report of the Ministry of Finance , 20 years of implementing the policy of exemption and reduction of agricultural land use tax shows that the total amount of agricultural land use tax exempted and reduced in the period of 2001 - 2010 is on average about 3,268.5 billion VND/year; in the period of 2011 - 2016, it is on average about 6,308.3 billion VND/year; in the period of 2017 - 2020, it is on average about 7,438.5 billion VND/year; in the period of 2021 - 2023, it is on average about 7,500 billion VND/year.

The policy of exemption and reduction of agricultural land use tax has had a great impact on agriculture, farmers and rural areas in each period. Thereby, contributing to directly supporting farmers, encouraging organizations and individuals to invest in agriculture, farmers and rural areas; encouraging land concentration for large-scale agricultural production, contributing to the restructuring of the agricultural and rural economy towards modernization, contributing to improving and enhancing farmers' lives, creating jobs for rural areas.

Although agriculture is a very important sector of the economy, we must also frankly admit that the development activities of agricultural cooperatives are mostly small-scale, low-efficiency and low competitiveness, not commensurate with the potential and advantages. Currently, the whole country has about 50,000 enterprises investing in agriculture. This is a very modest number compared to the total of over 900,000 enterprises operating in our country. This does not meet the requirements of agricultural development in the context of international economic integration as it is today.

This reality requires that we continue to have policies to promote commodity agriculture, including a policy of exemption of agricultural land use tax for organizations directly using agricultural land for agricultural production. For households and individuals engaged in agricultural production, we also need to continue to have preferential policies of exemption of agricultural land use tax for the next period to support and encourage land accumulation and concentration for investment in commodity agricultural production.

We cannot deny that the exemption of agricultural land use tax will affect the state budget revenue. However, the revenue from agricultural land use tax is very small, only partially compensating for the government's performance of state management functions over agricultural land. For example, according to calculations, this revenue only accounts for about 0.00057% of the total state budget revenue in 2023. However, from another perspective, the agricultural land use tax exemption policy is an important solution to contribute to the restructuring of the rural agricultural economy towards modernization, reducing difficulties for farmers, encouraging investment, promoting sustainable development of the agricultural economy and in line with the context of international integration. On that basis, the Government proposes to extend the implementation period of agricultural land use tax exemption according to the provisions of Resolution No. 55/2010/QH12, Resolution No. 28/2016/QH14 and Resolution No. 107/2020/QH15 until December 31, 2030.

According to the Ministry of Finance's calculations, with the proposal to extend the exemption period for agricultural land use tax as currently regulated until December 31, 2030, the amount of agricultural land use tax exempted is about 7,500 billion VND/year. Continuing to exempt agricultural land use tax until the end of 2030 will not reduce budget revenue, because this is a policy that is being implemented in practice.

Continuing to exempt agricultural land use tax is to continue to directly support farmers, is a source of direct financial investment for the agricultural sector, farmers, and rural areas to invest, expand production scale to improve productivity and product quality. Thereby helping to create jobs for farmers, improve their lives, connect with agricultural production activities, contribute to encouraging investment, promote sustainable development of the agricultural economy. At the same time, it demonstrates the consistent policy of the Party and State on agriculture, farmers, and rural areas; in line with the 5-year Socio-Economic Development Strategy, the master plan for agricultural production development.

A policy that is both economically significant and solves social security issues, therefore, voters, especially farmers, are looking forward to continuing to be exempted from agricultural land use tax in the coming time.

Ha An

Source: https://daibieunhandan.vn/bien-phap-khuyen-nong-hieu-qua-post409980.html