A Tax Exemption Proposal for Agricultural Land Use Until the End of 2030

National Assembly Session on Agricultural Land Tax Exemption

On the morning of May 13, the National Assembly heard the Government’s presentation on the draft resolution of the National Assembly on exempting agricultural land use tax.

The draft resolution consists of two articles, including a provision to extend the period of agricultural land tax exemption stipulated in Resolutions No. 55/2010/QH12, No. 28/2016/QH14, and No. 107/2020/QH14, effective from January 1, 2026, to December 31, 2030.

According to the Government, the agricultural land tax policy has been implemented for over 30 years, and the current exemption is in place until December 31, 2025, as per the National Assembly’s resolutions (except for agricultural land areas that the State assigns to organizations for management but not direct agricultural production, which are then leased to organizations or individuals for agricultural production through contracts).

Revenue from agricultural land tax is minimal, accounting for only about 0.00057% of the total state budget revenue in 2023, serving as a small compensation to support the government’s function in managing agricultural land.

While the agricultural land tax exemption has resulted in a reduction in state budget revenue (with an average exemption and reduction of approximately VND 3,268 billion/year in the 2001-2010 period; VND 6,308 billion/year in 2011-2016; VND 7,438 billion/year in 2017-2020; and VND 7,500 billion/year in 2021-2023), it is a measure that contributes to realizing the Party and State’s guidelines on agriculture, farmers, and rural areas.

Agricultural Land Tax Exemption Amounts to Approximately VND 7,500 Billion per Year

Localities agree that continuing the agricultural land tax exemption as per the current regulations for the next period is necessary.

This decision will build on the achievements of the previous land tax exemption policy, aligning with the Party and State’s orientations on agriculture, farmers, and rural areas. It will further encourage organizations, households, and individuals to invest in agriculture and rural areas, promote farm economies, contribute to the industrialization and modernization of agricultural and rural economic structures, and enhance the competitiveness of agricultural products in the context of international integration.

According to the Government, extending the agricultural land tax exemption until the end of 2030 will not result in a reduction in revenue as this policy is already in effect.

With the proposed extension of the agricultural land tax exemption until December 31, 2030, the amount of tax exempted is estimated to be approximately VND 7,500 billion per year.

This will continue to be a form of direct support to farmers, providing financial investment for the agriculture, farmers, and rural areas to expand production scales, improve productivity and product quality, create jobs, improve livelihoods, and foster a commitment to agricultural production. It also demonstrates the consistent policy of the Party and State regarding agriculture, farmers, and rural areas, in line with the five-year socio-economic development strategy and the master plan for the development of the agricultural production sector.