The enforcement issue of the Land and Building Tax Act for agricultural land use

Abstract

This academic article aims to present the issues arising from the enforcement of the Land and Building Tax Act and to propose solutions for the problem of land tax collection concerning instances of artificial agriculture. By means of studying from documents. The study reveals a clear disparity in tax collection rates under the 2019 Land and Building Tax Act when comparing land used for agriculture and vacant or unused land. The tax rate for agricultural land is substantially lower than that for vacant land, which constitutes a significant loophole conducive to tax planning and avoidance, thereby posing a challenge to effective tax collection. The recommendations suggest restricting the use of high economic-value land for merely symbolic agricultural purposes in areas of high economic value, imposing measures to prohibit or limit the formal use of land for agriculture, and creating tax incentives aligned with urban planning objectives.