The Ministry of Finance has proposed the National Assembly extend the agricultural land tax exemption until December 31, 2030. — VNA/VNS Photo

HÀ NỘI — The Ministry of Finance has proposed the National Assembly extend the agricultural land tax exemption until December 31, 2030, a move aimed at encouraging investments in agriculture and rural areas to improve the competitive edge of the agricultural products amidst deeper international integration.

If approved, the initiative will take effect from January 1, 2026.

According to the ministry, annual tax relief averaged VNĐ3.27 trillion (US$128.46 million) for 2003-10, and increased to VNĐ6.31 trillion for 2011-16, and some VNĐ7.5 trillion for 2021-23.

Despite the reduction in State budget revenue, the ministry said the policy has been instrumental in promoting sustainable rural development. Besides, the tax exemption aligns with Việt Nam's international trade commitments as a WTO member, has caused no trade disputes or conflicts with other nations, and has received strong support from localities.

The ministry described the policy as a form of direct support for farmers and a direct financial source to improve productivity and product quality. Additionally, it reflects the Party and State’s consistent approach to agricultural, rural, and farmer development.

The ministry projected that the exemption through 2030 would result in annual tax relief of around VNĐ7.5 trillion. — VNS