The Ministry of Finance has proposed that agricultural land-use be continued to exempt from taxation through 2030 to promote sustainable agricultural development.

The Minister of Finance on May 13 presented a draft National Assembly (NA) resolution on the tax exemption to the legislative body during its ninth session in Hanoi.

The policy is expected to encourage more investment in agricultural and rural development, thus contributing to accelerating the restructure of the agricultural sector, improving values and competitiveness for farm produce, according to the ministry.

The exemption tax has been in place since 1993 and has received strong support from local governments for its role in encouraging land use and food production.

The exempted tax amount is estimated at VND7.5 trillion ($287 million) per year and would not create any new burden on the budget, as the policy is already in effect, according to the ministry.