From January 1 to June 30, 2024, the Government will continue to reduce value-added tax from 10% to 8%. This will continue to be a driving force to promote production, business, and consumption; helping Ha Tinh businesses recover and develop.
Continue to apply VAT reduction policy for the first 6 months of the year
On December 28, 2023, the Government issued Decree 94/2023/ND-CP stipulating the policy of reducing value-added tax (VAT) according to Resolution 110/2023/QH15 dated November 29, 2023 of the National Assembly. Accordingly, in the first 6 months of 2024 (from January 1 to June 30), VAT will continue to decrease by 2% to support consumer demand stimulation and promote production and business development.
Officials of Ha Tinh Provincial Tax Department disseminated the VAT reduction policy in 2024 to officers and employees of Thanh Huy Group Joint Stock Company (Cam Xuyen).
Specifically, the groups of goods and services currently subject to the VAT rate of 10% will all be reduced to 8%, except for the groups of goods and telecommunications services, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; goods and services subject to special consumption tax; information technology according to the law on information technology.
As soon as the Government issued Decree 94/2023/ND-CP, the General Department of Taxation also issued Official Dispatch 12/CD-TCT to units in the whole industry, requesting tax departments of provinces and centrally run cities to proactively propagate and disseminate to taxpayers in the area to promptly implement the decree.
Following the direction of the General Department of Taxation, the Ha Tinh Provincial Tax Department has promptly disseminated the regulations on VAT reduction to taxpayers in the province. This information has been agreed and supported by many people and businesses.
Ha Tinh tax sector promotes propaganda to help people and businesses access policies.
Mr. Nguyen Xuan Thuong - Head of the Taxpayer Support and Propaganda Department (Ha Tinh Provincial Tax Department) said: “The tax sector is promoting propaganda and dissemination for people and businesses in the whole province to know and enjoy the policy. We also actively guide and promptly remove difficulties for businesses and business households when implementing the policy. 10% VAT is the most common tax at present, so when reduced, the majority of people and businesses will benefit from the policy. Reducing VAT will contribute to reducing costs and selling prices of goods and services, thereby promoting production, business and maintaining jobs for workers, contributing to stabilizing the macro economy and economic recovery in 2024”.
People and businesses are supported
Co.opmart Ha Tinh Supermarket has reduced prices on nearly 70% of items subject to VAT reduction under Decree 94/2023/ND-CP. According to calculations, VAT is expected to decrease by about 200 million VND in January. This reduction amount is adjusted directly on the cost of products sold to support customers and stimulate consumption. At the same time, to stimulate the Tet market, businesses also apply many promotional programs to further reduce prices on products that have had their taxes reduced.
The 2% VAT reduction policy is publicly announced by Co.opmart Ha Tinh Supermarket at the checkout counter.
Having just bought goods at Co.opmart Ha Tinh Supermarket, Ms. Tran Thi Tam Anh (Thach Ha Commune, Ha Tinh City) shared: “It is near Tet so my family's spending on buying goods is quite large. With a spending level of about 15 million VND/month, my family will save at least about 300,000 VND thanks to the Government's reduction in VAT. This amount of money is not large, but in the current difficult context, saving every penny is a penny. I will increase my purchases in places with clear tax rates."
From a production perspective, Ha Tinh enterprises also expressed their joy at continuing to “benefit” from the Government’s VAT reduction policy. At Sao Mai Joint Stock Company (Cam Xuyen), most input materials and output products are subject to 10% VAT, so when the tax is reduced, this enterprise will save over 250 million VND per month to reinvest and boost production and business.
Sao Mai Joint Stock Company (Cam Xuyen) is entitled to a VAT reduction of over 250 million VND per month for reinvestment and to boost production and business.
Ms. Van Thi Huong Tram - Chief Accountant of Sao Mai Joint Stock Company shared: "With VAT reduction, businesses can reduce part of their financial burden and have more resources to invest in production. In addition, output products with reduced VAT will have cheaper prices, thereby stimulating consumption and helping businesses develop."
The VAT reduction policy also has a very positive impact on businesses operating in the construction sector. Having carried out many large construction projects across the country, in 2023, Thanh Huy Group Joint Stock Company (Cam Xuyen) received a VAT reduction of more than VND 7.2 billion. Accordingly, the company has significantly reduced input costs when purchasing raw materials, fuels, and materials in a capital turnover cycle to complete the project; thereby helping businesses increase their ability to recover and expand production, creating more jobs for workers.
The 2% VAT reduction will be a boost to help Ha Tinh businesses recover and develop the economy in 2024.
It is known that the VAT reduction has been implemented in 2022 and 2023. Specifically, in 2022, the National Assembly issued Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program, including a solution to reduce VAT by 2% for a number of groups of goods and services subject to a VAT rate of 10% from February 1 to December 31, 2022. In 2023, the National Assembly continued to implement the VAT reduction policy according to Resolution 43/2022/QH15 from July 1 to December 31, 2023. Faced with economic difficulties in 2024, the National Assembly continued to implement the VAT reduction policy according to Resolution 110/2023/QH15 from January 1 to June 30, 2024.
It is expected that in the first 6 months of 2024, the Ha Tinh Provincial Tax Department will continue to reduce VAT by over VND 200 billion. The VAT reduction will contribute to reducing the cost of goods and services, stimulating consumption, promoting production and business, and nurturing sustainable revenue sources for the locality.
Phan Tram
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