HCMC – The National Assembly has approved a five-year extension of the agricultural land use tax exemption, aiming to enhance food security and support rural development.
The resolution, passed on June 26 with over 92.8% of lawmakers voting in favor, will extend the tax exemption through the end of 2030. It will take effect starting in 2026, reported the Vietnam News Agency.
Under the resolution, households, individuals, and organizations directly engaged in agricultural production will continue to be exempt from land use tax. The policy is intended to bolster Vietnam’s agricultural competitiveness, promote large-scale farming, and support modernization in the agriculture and rural sectors.
However, the exemption will not apply to cases where land is allocated by the State but subsequently leased out by organizations or individuals for agricultural production. In such cases, full tax obligations will remain in effect until the land is reclaimed by the State.
According to Government data, between 2001 and 2010, annual tax exemptions on agricultural land use averaged VND3.27 trillion. In the past three years, that figure has more than doubled to VND7.5 trillion per year.
The extension reflects the Government’s continued commitment to the policy that focuses on agriculture, rural areas, and farmers.
Phan Van Mai, chairman of the National Assembly’s Economic and Financial Committee, said the Standing Committee of the National Assembly agreed with the Government’s proposal and emphasized the need to maintain a legal foundation for ongoing support in this sector.
Lawmakers also called on the Government to conduct a comprehensive review of the agricultural land tax policy and assess its long-term impact. They urged a broader evaluation of land-related taxes and fees to inform future legislative changes.
If needed, the Government may consider amending the Law on Agricultural Land Use Tax to align with new management requirements and evolving national policies.
