HCMC – The Government has proposed extending the current tax exemption on agricultural land use until the end of 2030, aiming to sustain support for farmers and rural development while promoting investment in modern and large-scale farming.
The proposal, submitted to the National Assembly during a session on May 13, calls for an extension of the tax exemption policy as outlined in Resolution 55/2010/QH12 and subsequently amended by Resolutions 28/2016/QH14 and 107/2020/QH14. The current exemption is set to expire at the end of 2025.
Finance Minister Nguyen Van Thang said the policy has provided direct financial support to the agricultural sector, with tax exemptions averaging VND7.5 trillion per year in recent years. He noted that the tax system, largely based on outdated valuation methods, is no longer practical and has been almost entirely replaced by the full exemption policy since 2001.
According to the Finance Ministry, maintaining the exemption would help attract more private investment into agriculture, encourage land consolidation for large-scale production, and align with Vietnam’s commitments under trade agreements with foreign countries and international partners.
The drafting committee said that continuing the exemption is necessary to ensure food security and socio-economic stability, particularly as countries increasingly adopt protectionist trade policies. It emphasized that continuing the exemption through 2030 would not pose significant fiscal risks, as it reflects the status quo.
The committee also cited the positive socio-economic impact of the policy since its introduction more than a decade ago, including enhanced food security, land consolidation, and rural development. The exemption is expected to enhance the competitiveness of Vietnam’s agricultural products in global markets.
However, some members of the National Assembly’s Economic and Financial Committee raised concerns about inefficient land use. While supporting the extension, they urged the Government to review the current use of farmland and consider excluding fallow or misused plots from the exemption.
The committee emphasized that the extension would not reduce budget revenue, as the policy has already been in effect. It also proposed that the Government conduct periodic assessments of the policy’s impact on agricultural productivity, farmers, and land-use efficiency.
