ANTD.VN - The Ministry of Finance has proposed continuing to consider reducing value-added tax (VAT) by 2% in the first 6 months of 2024 as has been applied to support businesses and people.
This is the proposal of the Ministry of Finance in a recent document asking for opinions from ministries, branches, the Vietnam Federation of Industry and Commerce (VCCI), and People's Committees of provinces and cities.
The reduction of VAT on some groups of goods and services currently subject to a tax rate of 10% has been implemented stably in 2022 and 2023. Therefore, the Ministry of Finance has reported to the Prime Minister to continue implementing it in the first 6 months of 2024 as per current policy.
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The 2% VAT reduction policy is expected to last until mid-2024. |
Specifically, a 2% reduction in VAT applies to groups of goods and services currently subject to a tax rate of 10% (to 8%), except for a number of groups of goods and services including: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding coal mining), coke production, refined petroleum, production of chemicals and chemical products, goods and services subject to special consumption tax are not subject to this policy.
The application period is from January 1 to June 30, 2024. At the same time, the Standing Committee of the National Assembly is assigned to consider and decide on continuing to reduce VAT after June 30, 2024 if the economic situation and businesses and people are still facing difficulties, and report to the National Assembly at the nearest session.
According to the Ministry of Finance, the implementation of the 2% VAT reduction policy in the first 6 months of 2024 is expected to reduce state budget revenue by about VND 25,000 billion.
Of which, the monthly reduction in domestic revenue is about 2,700 billion VND; the reduction in import revenue is about 1,475 billion VND.
Reducing VAT by 2% will encourage people to buy more goods. This policy will also help businesses sell more goods, stimulating production and business activities to become more vibrant again.
According to the Ministry of Finance, from 2020 to present, the total value of solutions to exempt, reduce, and extend taxes, fees, charges, and land rents has reached about 700 trillion VND; in 2023 alone, it is about 196 trillion VND and as of September 2023, about 152.2 trillion VND has been implemented.
Regarding VAT, in the three months of July, August and September this year, the 2% VAT reduction policy has supported businesses and people with a total of about 11.7 trillion VND, contributing to reducing the cost of goods and services, thereby promoting production and business and creating more jobs for workers, contributing to stimulating consumer demand and promoting production and business development.
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