Ministry proposes extending agricultural land tax exemption through 2030

December 23, 2024 | 11:23

(0) user say

The Ministry of Finance has proposed the National Assembly extend the agricultural land tax exemption until December 31, 2030, a move aimed at encouraging investments in agriculture and rural areas to improve the competitive edge of the agricultural products amidst deeper international integration.

Ministry proposes extending agricultural land tax exemption through 2030

The Ministry of Finance has proposed the National Assembly extend the agricultural land tax exemption until December 31, 2030. (Photo: VNA)

Hanoi – The Ministry of Finance has proposed the National Assembly extend the agricultural land tax exemption until December 31, 2030, a move aimed at encouraging investments in agriculture and rural areas to improve the competitive edge of the agricultural products amidst deeper international integration.

If approved, the initiative will take effect from January 1, 2026.

According to the ministry, annual tax relief averaged 3.27 trillion VND (128.46 million USD) for 2003-2010, and increased to 6.31 trillion VND for 2011-2016, and some 7.5 trillion VND for 2021-2023.

Despite the reduction in state budget revenue, the ministry said the policy has been instrumental in promoting sustainable rural development. Besides, the tax exemption aligns with Vietnam's international trade commitments as a WTO member, has caused no trade disputes or conflicts with other nations, and has received strong support from localities.

The ministry described the policy as a form of direct support for farmers and a direct financial source to improve productivity and product quality. Additionally, it reflects the Party and State’s consistent approach to agricultural, rural, and farmer development.

The ministry projected that the exemption through 2030 would result in annual tax relief of around 7.5 trillion VND.

Land law overhaul transforms land acquisition

Senior partner Duyen Ha Vo and senior associate Tram Dang of VILAF explore the potential implications of upcoming changes on land acquisitions of developers engaged in real estate, energy, and infrastructure projects.

Land tax plans must solve speculation issue

The merits of a proposal to impose tax on those who own many houses, land plots, and unused properties in Vietnam are still being debated by both experts and homebuyers.

By VNA

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional