A draft resolution on exemption from and reduction of agricultural land use tax has been recently unveiled by its drafter, the MoF, for public opinion.
According to the MoF, the draft paper is elaborated to manifest the National Assembly’s policies on attraction of investment in agricultural production through offering agricultural land use tax exemption and reduction for the 2011-20 period.
As proposed in the draft paper, there would be four groups of entities eligible for tax exemption for land areas within prescribed limits. They would enjoy tax reduction for areas exceeding prescribed limits. These groups are (i) households and individuals that are allocated agricultural land by the State; (ii) cooperative members receiving agricultural land from agricultural cooperatives or enterprises; (iii) members of
agricultural or forestry farms; and (iv) households and individuals that contribute their agricultural land use rights to set up agricultural cooperatives under the Cooperative Law.
Tax exemption would also be given to poor households and households and individuals engaged in agricultural production in extremely difficult communes.
A 50 per cent reduction of agricultural land use tax would be provided to economic organizations, political organizations, socio-political organizations, socio-professional organizations, armed forces units and administrative and non-business units which manage and use land for agricultural production. Tax reduction would be also applied to households and individuals that are not allocated agricultural land by the State but acquire land from inheritance, donation, reclamation or transfer.
The draft resolution would be submitted to the National Assembly for adoption at its year-end session.-