The unpopular ESVF led to protests as thousands descended on the steps of parliament to voice concerns.
The ESVF was introduced to replace the Fire Services Property Levy from July 1, with significant cost increases for landowners, including hikes of up to 154 per cent for farmers.
Farmers in Benalla, many of whom already volunteer their time and resources to firefighting efforts, were among the hardest to be hit by the ESVF.
Benalla Rural City Council was one of many councils that spoke out against the move.
Last week Benalla Mayor Bernie Hearn said council maintained that the levy disproportionately punished those who were already doing more than their share.
“This levy does not reflect a fair or balanced funding model,” she said at the time.
“Farmers not only pay their rates but also spend thousands equipping themselves with their own firefighting gear.”
State Member for Euroa Annabelle Cleeland has been vocal about her opposition to the ESVF.
She took to social media on Friday, May 30 to welcome the news.
“Common sense has prevailed and Labor’s been forced to back down — farmers spared the Emergency Services Tax hike, for now,” she wrote on Facebook.
“But make no mistake, this is a pause, not a fix.”
Wimmera Farmer Andrew Weidemann AM and UFU Secretary Peter Marshall, leaders of the budget day Not in Our Name protest welcomed the news, but want to see the ESVF repealed.
"Today's announcement is a temporary pause on the collection of this tax for some people,“ Mr Weidemann said.
“It is not a full moratorium and the tax will hit businesses and homeowners hard this year.
"The Government has made clear that the pause for farmers is for this year only...
"We need to see this extra tax discarded entirely, and the laws that enable it repealed so it cannot be reintroduced when the government is no longer facing the intense political pressure that recent protests have produced.
"There should be an immediate public inquiry into the tax, its impact on Victorians, and the political machinations behind today's announcement."