Closely follow the situation, research and propose many solutions about taxes and fees to support the economy

In 2024, the Ministry of Finance will continue coordinating with other ministries to closely monitor the actual situation, and to research and propose support solutions. Photo: H.Anh

To restore production and businesses affected by the Covid pandemic and economic recession, for 4 consecutive years from 2020 to 2023, the Ministry of Finance has proactively researched, proposed and submitted to competent authorities as well as promulgating solutions to extend, exempt and reduce taxes, fees, charges and land rent (such as extending VAT, corporate income tax, personal income tax, special consumption tax and land rent; exemption and reduction of corporate income tax, personal income tax, VAT, import tax, environmental protection tax, land rent...) to support businesses and people.

Updating the progress of implementing tax and fee support packages, the Ministry of Finance said that in 2024, it would continue to reduce environmental protection tax rates on gasoline, oil, and lubricants following Resolution No. 42/2023/UBTVQH15 dated December 18, 2023 of the National Assembly Standing Committee.

In addition, the Ministry of Finance issued Circular No. 63/2023/TT-BTC dated October 16, 2023 amending and supplementing some articles of the Circular regulating fees and charges to encourage the use of online public service (effective from December 1, 2023 and applicable until the end of 2025).

Besides that, on April 5, 2024, the Government issued Resolution No. 44/NQ-CP. At Point b, Clause 3, Appendix II attached to the Resolution, the Government assigned the Ministry of Finance to "urgently research and submit to the Government and Prime Minister before April 30, 2024 to consider promulgating regulations on tax extension (VAT, corporate income tax, personal income tax, special consumption tax on domestically produced cars...), reducing registration fees for domestically produced and assembled cars, reducing land and water surface rent; promptly consider and promulgate according to authority or submit to competent authorities to promulgate policies to reduce taxes, fees and charges as implemented in 2023 to continue removing difficulties and supporting production and business activities. Furthermore, summarizing and evaluating the results of reducing value-added tax rates to report at the 7th Session, the 15th National Assembly will consider and allow implementation in the last six months of 2024.

Currently, the Ministry of Finance is implementing Resolution No. 44/NQ-CP dated April 5, 2024 of the Government.

Accordingly, the Decree extending the deadline for payment of VAT, corporate income tax (CIT), personal income tax (PIT), special consumption tax (SCT) and land rent, the Ministry of Finance issued official dispatch No. 4232/BTC-TCT dated April 23, 2024 reporting to the Prime Minister to allows the development of a Decree to extend the deadline for payment of VAT, CIT, PIT and land rent in 2024; the Decree extends the time limit for payment of special consumption tax for domestically produced or assembled cars following simplified procedures and procedures, and the Decrees which are taken effect from the date of signing.

On April 26, 2024, the Government Office issued official dispatch No. 2803/VPCP-KTTH announcing the opinion of Deputy Prime Minister Le Minh Khai agreeing with the proposal of the Ministry of Finance in official dispatch No. 4232/BTC- TCT on April 23, 2024. The Ministry of Finance urgently chairs and coordinates with the Ministry of Justice and relevant ministries and agencies to urgently develop and complete the above draft Decree and submit it to the Government in May 2024.

Currently, the Ministry of Finance (General Department of Taxation) is consulting with relevant units under the Ministry before seeking appraisal opinions from the Ministry of Justice to submit to the Government as stipulated.

The Ministry of Finance also said that the Government has just submitted Proposal No. 177/TTr-CP to the National Assembly on the results of implementing a reduction of 2% in VAT rate following Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly on the 6th Session, 15th National Assembly.

The report showed that, in the first three months of 2024, the amount of VAT reduced according to Resolution No. 110/2023/QH15 was about VND11,488 trillion. Except for February, which has the Tet holiday, in January and March, the average VAT reduction at the import stage was about VND1.5 trillion/month and was forecasted to be about VND2.5 trillion/month at the domestic stage.

Thus, in the first 6 months of 2024, revenue is expected to decrease by about VND23,488 trillion. If we continue to implement the VAT reduction policy for the last 6 months of the year, it is expected that the whole year of 2024 will reduce revenue by about VND47.488 trillion.

Based on the assessment of the results achieved by the 2% VAT reduction solution according to Resolution No. 110/2023/QH15, the Government submitted to the National Assembly for consideration and permission to continue implementing the 2% VAT reduction policy. For some groups of goods and services, the 10% VAT rate was applied in the last 6 months of 2024 (from July 1, 2024 to December 31, 2024) and assigned to the Government to organize and implement presently.

Assessing the impact on the budget in the last 6 months of the year, the Government said that applying the policy of reducing the VAT rate by 2% for the last 6 months of 2024 would reduce revenue by about VND24 trillion.

Accordingly, the decrease in revenue is about VND4 trillion/month, of which the decrease at the domestic stage is expected to be VND2.5 trillion/month and the decrease at the import stage is about VND1.5 trillion/month.