A series of fiscal policies promote efficiency

	Operating fiscal policy flexibly, creating momentum for recovery, promoting economic growth, Minister of Finance Ho Duc Phoc
	Finance sector proactive and pioneering in fiscal policies management for economic growth

The Ministry of Finance requires its subordinate units to reform administrative procedures and remove difficulties for the enterprises. Photo: H.A

Positive results from the market

The Finance sector has implemented solutions on taxes, fees, charges and land rent to support enterprises, thereby contributing to the economy's achievements. According to calculation, these support package in 2023 is about VND 200 trillion. The Ministry has proposed that the Government submit a 2% reduction in VAT rate to the National Assembly from July 1 to December 31. Implementing the policy is expected to reduce the VND24 trillion tax amount.

The Tax sector issued Decrease 44/2023/ND-CP guiding VAT reduction and requested Tax authorities at all levels to reduce VAT for enterprises.

In addition, the sector has implemented the policy of reducing environmental protection taxes on gasoline, oil, and lubricants in 2023, which is expected to decrease the State revenue by about VND38 trillion; extended VND110 trillion of VAT, corporate income tax, personal income tax and land rent in the year for businesses, organizations, business households, and individual businesses; extended VND10,400-11,200 billion of special consumption tax for domestically produced and assembled cars. The reduction of registration fees for domestically produced and assembled cars is expected to decline about VND8-9 trillion of the State revenue.

According to the Ministry of Finance, by the end of July, about VND 109 trillion was supported by the people. Along with the policy of exemption, reduction, and extension of taxes, fees, and charges, the Tax sector has executed the tax refund effectively.

The support policies implemented promptly and quickly have brought efficiency to the market and operation of businesses. Therefore, the socio-economic situation in July was better than in June, contributing to the overall results of seven months. The average CPI of seven months increased lower than that of six months. Industrial production continued to be restored. Total retail sales of goods and services in July grew compared with the previous months and the same period of the previous year.

In July, 13.7 thousand newly registered enterprises up 4.3% in the number of enterprises and 2.4% in registered capital year-on-year. In seven months, 131,900 enterprises entered and re-entered the market, higher than the number of enterprises withdrawing from the market, 113,300.

Focusing on supporting enterprises to recover and thrive

Many economic experts said that the socio-economic prosperity in July was initially recognized, showing that economic growth in the last months of the year tends to recover, creating a foundation for the increase in the State revenue and completion of the estimate.

This shows that the support solutions for production and business have promoted efficiency and assisted enterprises in restoring production and business, thereby increasing revenue.

Although enterprises still face difficulties, production and business have been restored gradually. The State revenue decreased compared with the same period of the previous year, but the revenue from production and business activities grew and accounted for half of domestic revenue. The domestic revenue of 27 of 63 localities is estimated to reach over 60% of the estimate despite the exemption, reduction and extension of taxes and fees.

According to Deputy Director General of the General Department of Taxation Mai Son, domestic tax collection results are one of the measures of the economy, showing taxpayers' efforts in production and business activities, and the determination and effective direction in the management by the regulator, especially in the fiscal policy. The Government issued policies on extension, exemption and reduction of taxes and fees. The Ministry of Finance has actively implemented it.

Economic expert Nguyen Bich Lam, former Director General of the General Statistics Office, Ministry of Planning and Investment, said that the important role of fiscal policy in the current context has been promoted, which is to implement counter-cyclical fiscal policy to stimulate consumption and investment, promote growth, control inflation while maintaining macroeconomic stability.

The Ministry of Finance has directed units in the sector, including the General Department of Taxation, to take measures, focusing on reforming administrative procedures and removing difficulties for enterprises, especially resolving problems about VAT refunds.

As a result, at the end of July, the Tax sector refunded nearly VND72 trillion to businesses. "Recently, the General Department of Taxation has requested leaders of Tax departments to work with enterprises on their tax refund dossiers directly, thereby grasping information to issue more accurate decisions," Son said.

The Ministry of Finance has directed its subordinate units not to issue new business production regulations that raise costs and time for enterprises.

Minister of Finance Ho Duc Phoc said the Ministry will focus on removing legal difficulties and business obstacles. At the same time, support businesses in tax exemption, reduction and extension to help businesses recover and develop. Create a financial market with capital to meet the needs of businesses, combine fiscal and monetary policies appropriately, and focus on the economy's growth target in the last six months of the year.

Dr Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises: "The VAT reduction not only reduces difficulties for businesses but also declines costs for people and stimulates demand in the supply value chain system. Although the VAT reduction is insignificant, the domestic market has developed and helped increase revenue. The reduction plays an important role and is consistent with reality when we require a major stimulus. This policy has fully met the financial requirements of management agencies, people, and businesses in 2023 and the following years."