MoF will support and remove problems for businesses: Minster of Finance

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Minister of Finance Ho Duc Phoc addresses the forum.

Actively accompanying businesses

The Covid-19 pandemic has posed challenges and greatly affected the development of the world as well as Vietnam, and had a serious impact on the socio-economic activities of businesses and people, especially in 2021.

Minister of Finance Ho Duc Phoc spoke at the Forum “Fiscal policy to support socio-economic recovery and development program” jointly held by the Vietnam Financial Times and Investor Magazine on the morning of April 7.

Since the outbreak of the Covid-19 pandemic in 2020, the Ministry of Finance (MoF) has actively researched and coordinated with relevant agencies to propose and submit to competent authorities and issued fiscal policies to support businesses and people affected by the pandemic.

The total value of support packages is about VND129 trillion. In 2021, all support packages have been executed at a higher level in both content with a value of about VND145 trillion.

In addition, to ensure the funds for importing Covid-19 vaccines, the Ministry of Finance has submitted to the Government to submit to the National Assembly, the National Assembly Standing Committee to allocate funds from saving sources and the remaining budget of the central budget in 2020 worth VND14.62 trillion for Covid-19 prevention and control; allowed localities to use residual salary reform to spend on Covid-19 prevention and control in 2021 and 2022. The ministry has submitted to the Government and Prime Minister to establish a "Vaccine Fund" to raise additional funds for this mission.

Until the end of the first quarter of 2022, the Government has spent about VND128.5 trillion for pandemic prevention and control and supporting people affected by the pandemic, of which the central budget has spent about VND31.5 trillion and the localities have spent about VND97 trillion.

The Ministry of Finance has also promptly provided supplies and equipment for the national reserve for this work of about 222.4 million tons of rice to support residents to overcome the consequences of natural disasters and epidemics.

According to the Minister of Finance, the decrease in the state revenue while still ensuring the expenditure for regular activities and capital for development investment, especially, the increase in expenditure for social security, and pandemic prevention has posed a great challenge to the state budget balance.

However, the Ministry of Finance has always been determined to accompany and assist businesses by providing solutions so that the business community can overcome difficulties, soon restore and develop production and business activities, thereby, paying and raising revenue for the State budget in a stable manner.

“We have gathered feedback from businesses and we will advise and report to the Government to remove obstacles for the businesses. We will also consider the promulgation of policies to meet the targets of national finance development and people’s development, ensuring a strong and harmonious development, contributing to improving national competitiveness", said Minister Ho Duc Phoc.

Regularly listening and removing obstacles

Regarding some burning issues discussed at the forum, including the sharp increase in gasoline prices affecting economic recovery and development, Minister Ho Duc Phuc said that the Government has never considered the difference in petroleum product prices as revenue, it always calculates the impact on the economy. However, comprehensive solutions need to be issued to control the prices, not only tax reduction.

According to the Minister, the ministry always calculates to ensure the balance of supply and demand, reduces taxes, prevents smuggling and ensures supply has a positive impact on the economy. The lower price of petroleum products in Vietnam than Laos and China and other neighboring countries shows the great efforts of the management agency.

“The problem is how to develop businesses, even when implementing the stimulus package. The extension of the stimulus package deadline from 2022 to the end of 2023 requires the basic works and public investment to be executed amid the increase in the prices of steel, petroleum products, and supply of materials, the Ministry of Finance requested provinces to issue the price list of raw materials monthly to help businesses reduce losses, quickly recover capital and implement projects," said Minister Ho Duc Phoc.

At the forum, some representatives mentioned tax refunds for the electricity industry.

Accordingly, businesses said that wind and solar power projects face many difficulties when carrying out tax refund procedures. According to current regulations, many conditional business lines such as electricity, seaport operation, and tourist accommodation services, can only be granted permits and certificates eligible for operation after completing investment. In the provisions of Government Decree 100/2016/ND-CP, investment projects of conditional business establishments and business lines are not eligible for VAT refund when they have not met business conditions as per the Law on Investment.

Enterprises said that polices are appropriate but have not yet optimized the cash flow of the businesses. Therefore, they propose the Ministry adjust the tax refund calculated in the month before the tax refund date, helping businesses to refund the maximum tax.

The Minister said the Ministry has submitted to the Government to issue a resolution to remove obstacles related to VAT for investment projects, especially large projects.

Sharing difficulties with the business community, the Minister said that currently the market, capital, labor, infrastructure, and streamlined administrative procedures are the most important things for the businesses.

Therefore, the Ministry will accompany businesses. The ministry expects businesses to promptly send problems through business associations and investor associations to the management agency. The ministry will regularly work online with provincial leaders to solve problems and difficulties under its management and competency.