Agricultural Land Use Tax Exemption: Government Proposes Extension Until 2030

The government proposes extending the agricultural land use tax exemption policy until 2030, which is expected to bring benefits of approximately 7.5 trillion VND per year, aiming to promote agricultural development and improve farmers’ livelihoods.

Government Proposes Extending Agricultural Land Use Tax Exemption Until End Of 2030, Prioritizing Agricultural Development

On April 15, 2025, the National Assembly Standing Committee reviewed the Government’s proposal to extend the agricultural land use tax exemption (SDĐNN) period under Resolution No. 55/2010/QH12. This proposal aims to further promote the positive effects that the policy has brought about in the past.

According to the Government’s report presented by Minister of Finance Nguyen Van Thang, the continued implementation of SDĐNN exemption is extremely necessary to encourage organizations and individuals to invest more strongly in the agricultural sector, making a significant contribution to the industry’s restructuring process.

Practical Benefits From The Agricultural Land Use Tax Exemption Policy

The agricultural land use tax exemption policy not only encourages investment but also brings many other significant benefits:

Ensuring national food security: The tax exemption helps farmers feel secure in production, contributing to maintaining and strengthening the country’s food security. Stabilizing socio-economic conditions: The policy promotes the accumulation and concentration of land, creating conditions for innovation in agricultural production methods towards modernization, specialization, and large-scale operations. Enhancing the competitiveness of agricultural products: In the context of international economic integration, the tax exemption helps reduce production costs, increasing the competitiveness of Vietnamese agricultural products. Creating jobs and increasing farmers’ income: The policy supports job creation in rural areas, improves income, and contributes to sustainable poverty reduction and new rural development. Aligning with international commitments: The tax exemption also demonstrates Vietnam’s consistency with international commitments and practices regarding supporting agricultural development.

Proposal For Extension Until 2030 And No Reduction In State Budget Revenue

The government proposes extending the SDĐNN exemption period until December 31, 2030, based on previously issued Resolutions (Resolution No. 55/2010/QH12, Resolution No. 28/2016/QH14, and Resolution No. 107/2020/QH15). This policy is fully consistent with the Party and State’s guidelines on agricultural, farmer, and rural development.

Minister Nguyen Van Thang affirmed that the continued SDĐNN exemption until 2030 will not cause a reduction in state budget revenue, as this is a policy that has already been implemented. It is estimated that the amount of SDĐNN tax exempted under this proposal will be approximately 7.5 trillion VND per year.

National Assembly Standing Committee Highly Agrees With The Proposal

Reviewing this content, Chairman of the Economic and Financial Committee Phan Van Mai highly appreciated the significance of the SDĐNN exemption, which demonstrates the Party and State’s concern for the development of agriculture and the livelihoods of farmers. The Committee also noted the positive impacts that the policy has brought about without any significant difficulties or obstacles.

In particular, the Committee also noted the increasing investment in the agricultural sector from large enterprises and corporations, contributing to improving the quality and efficiency of agricultural production.

However, the Committee also requested the Government to consider not exempting SDĐNN for cases of land left fallow or used for purposes other than agriculture. At the same time, it is necessary to periodically evaluate the effectiveness of the tax exemption policy from the perspectives of its impact on the agricultural economy, farmers’ lives, and land use efficiency.

At the meeting, the National Assembly Standing Committee highly agreed with the Government’s report and draft Resolution, and unanimously agreed to submit it to the National Assembly for consideration and decision at the 9th session of the 15th National Assembly under the 2025 Law and Ordinance Development Program.

Conclusion

The proposal to extend the agricultural land use tax exemption policy until 2030 is a positive signal, demonstrating the State’s deep concern for the sustainable development of the agricultural sector and the livelihoods of farmers. This policy promises to continue to create strong momentum for the growth and modernization of Vietnam’s agriculture.