National Assembly deputies Thursday adopted a resolution on agricultural land-use tax exemptions and reductions during the 2011-20 period.

Tax exemptions will be applied on agricultural land used for research and trial production activities, land used for at least one rice crop per year, and land used for producing salt.

Poor households and those who are allocated with agricultural land by the State, including individuals and members of co-operatives, are also eligible for the tax exemptions.

The resolution also states clearly that organisations and units that misuse agricultural land will have their land revoked and be required to pay the land use tax while waiting for the revocation process to be completed.

The National Assembly Standing Committee explained that the tax exemption was necessary because the agriculture sector saw slow development and farmers still faced with many difficulties.

However, the committee proposed not to provide full tax exemptions to all kinds of agricultural land as land was a national resource owned by the public. On principle, users of public resources must pay taxes to the State.

It was necessary to apply comprehensive measures to promote agricultural development and taxes were only a tool to help deal with the initial financial difficulties, the committee said.

Tax collection was not aimed to boost the national budget but to meet demands and encourage land users to use land effectively and economically, the committee said.

The resolution will take effect on January 1, 1011.

The same day, the NA also approved several other laws, including the amended law on insurance business and the amended securities law, which will take effect on July 1, 2011, the amended law on electing NA and People’s Council members, which will be effective as of January 1, 2011, and the amended administrative litigation law and a resolution on implementing the law.

Source: VNA