Government proposes reductions to and then abolition of land use fees on land used for agriculture.
The government has just submitted an amendment to a Resolution on budget planning for 2016, removing land use fees on land for agricultural purposes.
The tax will be removed completely by December 31, 2020 for most individuals, households, cooperatives, and farms with land assigned by the State, inherited, or purchased for the purpose of agriculture.
The amendment, however, does not apply to those with land assigned by the State not being directly used for agricultural purposes.
From 2011 to 2014 the revenue from fees on such land averaged about VND67.3 billion ($3 million) per year, with those subject to the amendment contributing some VND60.8 billion ($2.71 million) per year, or VND51 billion ($2.27 million) from individuals and VND7.7 billion ($343,651) from other types, while the military sector contributes about VND2.1 billion ($93,723) per year.
The government therefore predicts revenue from agriculture land use fees will fall to VND6.5 billion ($290,095).
If the amendment comes into effect, the government believes, it will encourage people to increase the scale of agricultural land use and increase the sector’s efficiency.