NA pushes for farm-land tax cuts

28/10/2010
Most National Assembly deputies agreed on the need to issue a resolution on agricultural land-use tax exemptions and reductions during a session yesterday.

The deputies backed the proposal of a draft resolution requesting an exemption of taxes on all agricultural land area being used for research and experimental production, for tree growing areas that also grow at least one crop of rice every year, salt-making areas, and all agriculture land used by poor householders - and other beneficiaries.

Finance Minister Vu Van Ninh told the session that the resolution was aimed at institutionalising the Party and Government's policy to motivate farmers to accumulate capital, increase investment, speed up economic development in agriculture and improve the lives of rural people.

Deputy Nguyen Thi Nguyet Huong said the renewal of agriculture land use tax exemptions and reductions would encourage organisations and individuals to invest in the agriculture sector, which would help speed up the implementation of the social security policy.

However, she asked for a 100-per-cent tax on agriculture land which had been left uncultivated for over two years.

Most members of the NA Finance and Budget Committee agreed it was necessary to continue the exemption and reduce agriculture land use taxes in the time to come. However, some deputies expressed the opinion that it would be necessary in the long term to impose taxes on agriculture land.

The committee proposed a review of the implementation of agriculture land use tax exemptions and reductions in order to make the law fit in with the new development and focus on specific areas.

Deputy Nguyen Thi Hoa said the draft should give tax exemptions to all types of cultivation, including vegetable and fruit growing areas, in an attempt to satisfy the society's demands for agricultural products in terms of both quantity and quality.

She said it would be difficult to grow high quality products, ensure sufficient quantity and low production costs if enterprises were not encouraged to invest in agriculture and accumulate land.

Deputy Nguyen Tan Trinh expressed his disagreement.

He said tax exemptions and reductions must focus on key points and specific areas to avoid scattered grants.

Trinh said it was necessary to classify beneficiaries and categories that would enjoy agriculture land use tax exemptions and reductions according to land use purposes (rice growing land, salt making land, orchards..) and the division of land use periods.

A majority of the deputies said the revenue earned from agriculture land use taxes was not high.

They said the entire exemption of agriculture land use taxes would create a psychological consensus among farmers and give them assurance about their agricultural production.

Most deputies agreed to apply tax exemptions and reductions for 10 years.

On average, VND2,8 trillion (US$149 million) worth of agriculture land use taxes were exempted or reduced to more than 11.2 million households each year from 2003-09.

Elections

Most deputies also reached a consensus to focus on amending and supplementing important issues with a view of avoiding difficulties when holding NA and People's Council elections on the same day.

Deputy Tran Thi Quoc Khanh said the simultaneous holding of the elections would save the State money and ensure the synchronisation of the State apparatus.

Earlier, head of NA Deputies Affairs Pham Minh Tuyen told the session that some problems needed to be resolved before the country holds concurrent NA and People's Council elections for the 2011-16 term on the same day next year.

He said the two elections currently had different regulations, which would make them very complicated to organise but that it would be a waste of time and money if the country held elections independently according to each law.

Tuyen said some regulations in the two laws had also exposed shortcomings which needed to be amended to make them synchronous with other laws on the organisation of the State apparatus.

Chairman of the NA's Law Committee Nguyen Van Thuan recommended the creation of specific and thorough guidelines for concurrent elections.

Regarding a pilot project on the abolishment of People's Councils at the ward and district levels in 10 provinces and cities, the chairman backed a statement by the NA Standing Committee not to hold election in these localities.

The issue is being reviewed by the Government and will be decided at the ongoing NA meeting.

Thuan said the abolishment of People's Councils at the ward and district levels nationwide would require amendments and supplements to several articles of the Constitution and the Law on the Organisation of People's Councils and People's Committees, and other laws.

He quoted some other opinions on revisions and supplements to other issues, including a determination of the specific number of female NA and People's Council deputies in the two laws; increasing People's Council members for expanded Ha Noi and provinces nationwide; and more specific regulations and criteria for becoming NA and People's Council deputies.

Deputy Khanh said it would be difficult to achieve targets if the specific goals were not regulated in the two laws.

She said the number of female NA and People's Council deputies were currently 25.76 per cent.

The NA also listened to reports on the law against human trafficking and the law on complaints. — VNS