Financial mechanisms and policies are the motivation to realize a “dual goal” in 2020

VCN  - Institutionalizing and finalizing tasks of the Ministry of Finance in the first half of 2020 has been carried out proactively, meeting the progress requirements and quality assurance, contributing to the institutionalization of the Party and State's guidelines and policies, raising the effectiveness and efficiency of state management in the field of finance and state budget, promptly remove difficulties for businesses and people affected by the Covid-19 pandemic.
financial mechanisms and policies are the motivation to realize a dual goal in 2020 Solidarity and especially financial support needed to overcome Covid-19 pandemic
financial mechanisms and policies are the motivation to realize a dual goal in 2020 Mobilization via financial transparency
financial mechanisms and policies are the motivation to realize a dual goal in 2020 Minister of Finance Dinh Tien Dung: Focus on 10 financial solutions to support economic recovery
financial mechanisms and policies are the motivation to realize a dual goal in 2020
The timely financial policies have become an important driving force for enterprises to restore production. Photo: La Diu

Proactively offer support solutions

In order to support businesses and help people cope with the Covid-19 pandemic, and at the same time continue implementing the objectives and tasks of socio-economic development and the state budget in 2020, the Ministry of Finance has to build and synchronously implement many solutions and proposals on tax, charges and fee policies to remove difficulties, boost production and business, and restart the economy. Most of the policies are to simplify procedures to be applied in time.

The Ministry of Finance has been closely monitoring the actual situation, learning international experiences (in countries affected by the Covid-19 pandemic) as well as recommendations from international organizations (WB, IMF) and reviewing the ability of the budget to submit to the Government for promulgatingDecree No. 41/2020/ND-CP of April 8, 2020 on extending the deadline for paying tax (value added tax, personal income tax for business households, corporate income tax) and land rent for most people who are in difficulties due to the impact of the disease.

The Ministry of Finance has also directed the General Department of Taxation to guide the local tax departments on the implementation of Decree No. 41 to ensure uniformity and favorable conditions for taxpayers. So far, the Tax agencies have received over 133,000 requests for extension of tax and land rent with the amount of tax and land rent extended is nearly VND37.1 trillion. It is expected that the number of proposed extensions and the amount of tax and land rental will be extended in the future.

The Ministry of Finance has also submitted to the Government for reporting to the National Assembly at the 9th session of the 14th term, on the approval of a 30% reduction of business income tax for small-sized enterprises (the expected tax revenue reduction is about VND15,840 billion per year). Along with that, the Ministry of Finance has proactively submitted to the Government the exemption of license fees for many subjects such as households, individuals and newly established groups of individuals in the first year; individuals, groups of individuals, households and production and business activities with annual revenue of VND100 million or less; promptly exempt import taxes on production materials and a number of goods in service of epidemic prevention; 50% reduction of registration fee for domestic manufactured and assembled cars until the end of December 31, 2020.

Ensure the institutional building plan

In the first six months, following the set goals, the Ministry of Finance submitted to the Government to submit to the National Assembly for approval three Resolutions at the 9th session, including the Resolution on exemption of agricultural land use tax; Resolution on a number of specific financial and budget mechanisms and policies for Hanoi; Resolution on reduction of corporate income tax payable in 2020 for enterprises, cooperatives, non-business units and other organizations; submitted to the National Assembly Standing Committee for consideration five resolutions, of which two important resolutions have been passed; submitted to the Government for promulgating 12 Decrees and submitted to the Prime Minister for promulgatingtwo Decisions.

Besides, the Ministry of Finance has also regularly reviewed and systematized the list of legal documents; updated information on newly issued documents and posted them fully and promptly on the Ministry's Web Portal and National Database; intensified the propagation and dissemination of new legal documents and policies; tax law consultancy and support for businesses and people.

A number of important policies, which have a great impact on production and business activities, have been implemented in the past six months. These include the Government's Decree No. 57/2020/ND-CP of May 25, 2020, revising the Government's Decree No. 125/2017/ND-CP on the Export Tariff and the Preferential Import Tariff, which has reduced 24 commodity tax groups to remove difficulties for businesses and promote the development of agriculture, mechanics, supporting industries, automotive industry (the tax amount expected to reduce budget revenue is about VND6,000 billion).

Resolution No. 954/2020/UBTVQH14 of June 2, 2020 of the Standing Committee of the National Assembly on adjusting the reduction of family circumstances for taxpayers and dependents to reduce tax liability for individuals with expected tax revenue reduction of about VND10,800 billion each year. In addition, it will continue to exempt agricultural land use tax by the end of 2025 to directly support organizations and individuals engaged in agricultural production with about VND7,500 billion per year.

Regarding the equitization and divestment, in the past six months, only three enterprises have been approved for equitization plans, corporations have divested VND688 billion, collecting VND1,362 billion. In order to speed up the process of restructuring state-owned enterprises, the Ministry of Finance has submitted to the Government amending and supplementing the regulations on transforming a State enterprise and a one-member limited company invested by a 100% state-owned enterprise into a joint stock company, ensuring transparency, maximizing the interests of the State, limiting the loss of capital and state assets in the process of equitization and divestment.

Continue to facilitate

The gradual recovery of activities on the basis of relaxing social distancing is also a strong momentum for the development and this is also the time to enter a new phase of the implementation of the dual task ofcontinuing to combat epidemics and implementing socio-economic recovery.

In a recent report to the Government, the Ministry of Finance affirmed that it would continue to focus on implementing institutional solutions to support businesses and people to restore and stabilize production and business activities, and at the same time, take opportunities for the development in the second half of 2020. Of which, submit to the Government for promulgation a Decree amending Decree No. 134/2016 / ND-CP dated September 1, 2016 to remove problems and issued in recent years to promote production and export of high value-added products; remove difficulties for businesses operating in the fields of footwear, textiles, agricultural, forestry and aquatic product processing.

In line with the Resolution No. 84, the Ministry of Finance is formulating a resolution to be submitted to the Government and to the National Assembly Standing Committee to reduce environmental protection tax on aircraft fuel; continue reviewing and cutting fees and charges to reduce costs for businesses and people.

In parallel with that, continue reviewing, amending and supplementing preferential policies, encouraging production and business development, creating motivation for economic growth; promoting reform of administrative procedures, review, abolish and simplify business conditions; continuing to expand the application of information technology and modernize management methods. Thus, enterprises and people can be further facilitated.

The Ministry of Finance has cooperated with other ministries and agencies to review, develop and issue 19 Circulars to adjust charge and fee rates currently regulated in 29 Circulars on collection of charges and fees, thereby reducing many fees and charges with a high reduction such as: 70% of the enterprise registration fee collection; 67% reduction of business information publication fee; 50-70% reduction of fees for evaluation and amendments to postal operation licenses; reduction of 50% of fee for granting operation license of credit institutions; reduction of 50% of fee for appraising construction investment projects and evaluation of design of construction investment projects; 50% reduction of the 20 of 22 collection of fees and charges in the securities sector; 30% reduction of meteorological data mining fee. Total reduced fees and charges are expected to reduce the budget revenue by about VND1,000 billion from the time of application to the end of 2020.
By Hong Van/KieuOanh

Related News

Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Quang Ninh Customs: Innovation in developing Customs-Business partnership

Quang Ninh Customs: Innovation in developing Customs-Business partnership

VCN - Quang Ninh Customs Department is determined to improve the quality of Customs-Business partnership, with practical actions in supporting and accompanying businesses.
Digital transformation in Customs sector is a revolution

Digital transformation in Customs sector is a revolution

VCN - This content was emphasized by Deputy Director General Tran Duc Hung at the Workshop introducing the requirements of technical process serving the construction of the Information Technology (IT) System to implement Digital Customs organized by the General Department of Customs on October 24, 2024.

Latest News

M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Read More

Your care

Latest Most read
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Mobile Version