Taxes on agricultural land use proposed to be exempted

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The Government, on October 25^th, proposed to exempt or cut down taxes of agricultural land use for poor farmers and several other organisations during the 10-year period of 2011-2020, according to the Government’s Statement on the Draft Solution on taxes on agricultural land use.

Accordingly, all agricultural land serving agricultural research, agricultural pilot production and salt production will enjoy tax holidays.

The exemptions of land use taxes are extended to all land possessed by poor farmers.

The proposal also states that taxes will not be imposed on areas of land allocated by State organisations and Co-ops to farmers to produce agricultural crops under the related laws.

In addition, under the statement, taxes on the areas of agricultural land that farmers possess exceeding the limits defined by laws or land used for agricultural production by non-agricultural organisations will be cut by half.

If the Resolution is passed, it will come into effect from January 1^st, 2011.  

Source: HNM