A field in Long Xuyen Quadrangle. The Government proposed the policy of agricultural land tax exemption be extended to the end of 2025 to encourage agricultural and rural development.
The Ministry of Finance said an estimated VND7.5 trillion (US$3.2 billion) in agricultural land tax would be exempted every year in the 2021-25 period, which was expected to return to the sector as an investment to expand production, improve productivity and product quality.
The ministry said the agricultural land tax exemption would not cause a drop in State budget revenue because this policy was already implemented from 2001. Under the National Assembly’s Resolution 55/2010/QH12 dated on November 24, 2010, the exemption was set to run until the end of this year.
Over the past two decades, the policy had been proven to help improve farmers’ life and generate jobs for the rural sector, through which, farmers could have the capital to reinvest and apply science and technology in agricultural production.
The policy also encouraged farmers not to leave land deserted and help them feel secure when investing in agriculture.
The Ministry of Finance, however, noted that the land tax exemption alone was not enough, adding that a combination of policies was needed to promote efficient agricultural production.
In addition, the ministry said agricultural land which was used for wrong purposes must be revoked and handed to those who use it efficiently.
Pham Dinh Thi, Director of the ministry’s Tax Policy Department, said the agricultural land tax exemption policy was critical to the sector.
Thi said the exemption was also in line with Viet Nam’s international commitments and international practices.
The ministry’s statistics showed more than 10 million farmers and 6 million hectares of agricultural land enjoyed the exemption each year in 2003-10 with a sum worth an average of VND3.2 trillion in agricultural land tax exempted each year.
In 2011-16, the exemption benefited 12 million farmers and more than 7 million hectares of land. The exempted tax was worth VND6.3 trillion per year.
In 2017-18, more than 12 million farmers and more than 8 million hectares of agricultural land enjoyed the exemption with an average of VND7.4 trillion in tax exempted per year.
The value in 2013-18 totalled VND17 trillion, the finance ministry said, adding that the sum created an important direct financial resource for the agricultural sector. — VNS
Capital city-based businesses on Thursday asked for specific tax policies from local authorities as they struggle with the economic downturn caused by COVID-19.
About 700,000 enterprises are expected to enjoy a cut in corporate income tax (CIT) to between 15-17 per cent from July 1 this year, down from the current rate of 20 per cent.