A Government report at the ongoing National Assembly session said that reductions on farm land tax have benefited farmers significantly over the past 20 years and encouraged investment in agriculture and rural development. 

“The extension of this preferential policy is necessary as it meets the aspiration of voters, particularly farmers. The Government should also seek ways to make the best use of cultivation land,” said deputy Tran Van Lam of  Bac Giang province.

The tax amount to be waived in the next 5 years is estimated at more than 320 million USD. Experts said the policy does not hinder Vietnam’s trade ties with other countries and international commitments.