According to the proposal, tax reduction and exemption would be applied not only to farmers but also to other individuals or entities in order to encourage people and businesses to take part in large-scale agricultural production and rural development. 

At present, the total tax reduction and exemption for agricultural land use is worth VND7 trillion (US$318 million), the report said. 

The lawmakers at a meeting of the National Assembly Standing Committee on September 15 agreed that the tax exemption was a good policy because farmers’ incomes were unstable and low. 

However, many deputies urged the Government to review agricultural land use, especially forestry farms, by State entities. 

NA Vice Chairman Do Ba Ty said many farms misused the forest land areas allocated to them, including cases of farm heads illegally transferring the land for personal gain. 

“The Government should carefully check situation and consider whether to offer tax exemption to such farms,” said Ty. 

NA Vice Chairwoman Tong Thi Phong and Chairman of the Economic Committee Vu Hong Thanh said sanctions should be applied in cases of agricultural land misuse.