The ministry recently issued a written response to recommendations from delegate Doan Thu Ha of the Lang Son National Assembly delegation, forwarded by the Committee for Public Aspirations and Supervision.

According to the proposal, the delegate requested the Ministry of Finance to review and assess the effectiveness of the current Law on Non-Agricultural Land Use Tax, particularly its socio-economic impact on households and individuals.

The delegate also called for an evaluation of the balance between revenue generated from the tax and the administrative costs of implementing and operating the system over recent years. The assessment would serve as a basis for considering tax exemptions or reductions at a suitable time.

In the long term, the delegate proposed studying the development of a property tax law to replace the current Law on Non-Agricultural Land Use Tax, without restrictions related to land quotas or geographical areas. The goal would be to improve management and regulation of assets, especially real estate and high-value properties, while increasing state budget revenue and ensuring more effective use of land resources.

Annual revenue from non-agricultural land tax reaches about VND1.7 trillion

In its response, the Ministry of Finance said that under Plan No. 81 of the National Assembly Standing Committee and Decision No. 2114 of the Prime Minister, the ministry had conducted reviews, assessments and consultations with ministries, local authorities and international experiences to prepare research reports on tax laws.

The review covered non-agricultural land use tax, agricultural land use tax and other taxes related to real estate before being submitted to the Ministry of Justice for consolidation and reporting to the Government.

According to the ministry, annual revenue from non-agricultural land use tax averaged about VND1.7 trillion ($65.4 million) during the 2012-2021 period, with annual growth averaging around 11.2%.

“Revenue from non-agricultural land use tax remains a stable source of income and carries significance for the state budget. At the same time, there is still room to implement tax exemptions or reductions in truly necessary cases,” the ministry stated.

The ministry also noted that on March 16, 2023, the Government submitted Report No. 71/BC-CP to the National Assembly Standing Committee regarding the implementation of Plan No. 81.

The report included reviews and research related to the Law on Non-Agricultural Land Use Tax, the Law on Agricultural Land Use Tax and a proposed Property Tax Law that could replace the two existing laws.

National Assembly expected to review amendments in October 2026

According to the Ministry of Finance, property tax would represent a new tax policy with a broad and complex scope, likely to have a major impact on citizens, businesses, the real estate market and the wider economy.

After analyzing socio-economic conditions, real estate market developments, national development orientations and policy impacts, the ministry submitted reports and proposals to the Prime Minister regarding the development of a Property Tax Law for consideration by higher authorities at an appropriate time.

This proposal was approved by Government leaders under Official Dispatch No. 1115/VPCP-PL dated April 2, 2024.

The ministry said it is continuing to study international experience and identify existing problems in current property-related tax policies.

Based on these findings, the ministry will report to competent authorities at an appropriate time to ensure compatibility with Vietnam’s socio-economic conditions, international practices and the broader tax reform strategy for 2021-2030.

In addition, under the National Assembly’s 2026 legislative agenda and the Law on Promulgation of Legal Documents, the Ministry of Finance is preparing a draft law amending and supplementing several articles of the Law on Non-Agricultural Land Use Tax.

The draft is expected to be submitted to the National Assembly for discussion and approval during the second session of the 16th National Assembly in October 2026.

Nguyen Le