Beginning October 1, agricultural land which is used for research will be exempt from taxes.
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| Tax priorities on agricultural land to help ease burden on farmers |
This is part of the Ministry of Finance\'s circular stipulating the specifics on the Government\'s decree on tax reduction and exemption on farming land.
Also, agricultural land that has been handed over to poor households will be tax-exempt.
Other exemptions for the tax include land used for salt production, areas that produce at least one crop of rice per year, as well as all officially inherited, transferred or gifted land.
Agricultural land that the State grants to political and social organisations will receive a 50% tax reduction.
These regulations will be valid for the next ten years.
The Vice Chairman of the Vietnam Farmers Association, Nguyen Duy Luong, was cited by the Vietnam News Agency as saying that revenue collected from agricultural land use amounts to only about VND1.8 trillion ($86.5 million) per year – equal to just 0.02% of gross domestic product – yet the taxes place a huge burden on small farmers and needed to be eliminated as part of the nations drive to eliminate poverty.
