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

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 period of exemption from agricultural land use tax for 5 years, from January 1, 2026 to December 31, 2030. According to the Ministry of Finance, continuing to implement the 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 the 5-year incentive level is difficult to attract long-term agricultural investment projects, in addition to the above option, the Ministry of Finance proposes a plan to exempt agricultural land use tax for the next 10 years, from January 1, 2026 to January 1, 2036. This option is assessed by the Ministry of Finance as unfeasible because of the unpredictable fluctuations in the world economic situation, and in case of necessity, it will be difficult to adjust the policy when there is a need for tax policy to regulate.

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

Source: https://thanhnien.vn/de-xuat-mien-thue-su-dung-dat-nong-nghiep-den-het-nam-2030-185240702230615435.htm