Reducing agricultural land use tax contributes to hunger eradication and poverty reduction

Exemption and reduction of about 7,500 billion VND/year

The agricultural land use tax policy is implemented according to the provisions of the Law on Agricultural Land Use Tax 1993, Decree No. 31-L/CTN 1994 of the National Assembly Standing Committee on additional tax for households using agricultural land exceeding the land area limit.

Implementing the Party and State's policy of hunger eradication and poverty reduction, while supporting farmers and encouraging the development of agricultural production, the policy of exemption and reduction of agricultural land use tax has been implemented since 2001.

According to current regulations, agricultural land use tax is exempted until December 31, 2025 according to Resolution 55/2010/QH12, Resolution 28/2016/QH14 and Resolution 107/2020/QH14 of the National Assembly, except for the agricultural land area that the State assigns to organizations for management but does not directly use the land for agricultural production but assigns it to other organizations and individuals to receive contracts for agricultural production.

According to the Ministry of Finance, summarizing and evaluating 20 years of implementing the policy of exemption and reduction of agricultural land use tax, the total amount of agricultural land use tax exempted and reduced in the period 2001-2010 was on average about 3,268.5 billion VND/year; in the period 2011-2016, on average, about 6,308.3 billion VND/year; in the period 2017-2020, about 7,438.5 billion VND/year; in the period 2021-2023, on average, about 7,500 billion VND/year.

This policy has contributed to implementing the Party and State's policies and viewpoints on agriculture, farmers and rural areas in each period; contributed to directly supporting farmers, encouraging organizations and individuals to invest in agriculture, farmers and rural areas.

At the same time, encourage land concentration for large-scale agricultural production, contributing to the restructuring of agricultural and rural economies towards modernization. Thereby, contributing to improving and enhancing farmers' lives, creating jobs for rural areas, contributing to enhancing the competitiveness of agricultural products in the market in the context of international economic integration.

Direct support to farmers

To continue implementing the results achieved from the exemption of agricultural land use tax, the Government and the Ministry of Finance propose to submit to the National Assembly a Resolution of the National Assembly to extend the implementation period of the exemption of agricultural land use tax according to the provisions of Resolution 55/2010/QH12, Resolution 28/2016/QH14 and Resolution 107/2020/QH15 until December 31, 2030.

According to Minister of Finance Nguyen Van Thang, continuing to exempt agricultural land use tax until the end of 2030 will not reduce state budget revenue because this is a policy that is being implemented in practice. With the above proposal to extend the agricultural land use tax exemption period, the amount of agricultural land use tax exempted is about 7,500 billion VND/year.

This policy will continue to be a form of direct support to farmers, a source of direct financial investment for the agricultural sector, farmers, and rural areas to invest and expand production scale to improve productivity and product quality. Thereby, contributing to encouraging investment and promoting sustainable development of the agricultural economy.

According to Mr. Phan Van Mai, Chairman of the National Assembly's Economic and Financial Committee, over the past 30 years since the Law on Agricultural Land Use Tax was promulgated, the policy of exemption and reduction of agricultural land use tax has been implemented for a long time through Resolutions of the National Assembly issued outside the scope of the Law. This reflects the Party and State's policy of prioritizing support for agricultural, farmer and rural development over the periods.

In order to use the policy of exemption and reduction of agricultural land use tax as a tool to promote effective land use and avoid wasting agricultural land resources, the Economic and Financial Committee recommends considering only exempting agricultural land use tax for cases where land is used for agricultural production purposes to encourage people and businesses to use land for the right purposes, economically and effectively; excluding tax exemptions for abandoned land, land not used for a long time (for example, 2 years or more), land used for the wrong purpose or without valid documents... to avoid land being abandoned, causing waste of resources or being used for the wrong purpose.

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Source: https://baolaocai.vn/giam-thue-su-dung-dat-nong-nghiep-gop-phan-xoa-doi-giam-ngheo-post400519.html