ANTD.VN - In the first four months of the year, the 2% reduction in value-added tax has reduced budget revenue by about VND15,488 billion. However, total state budget revenue is estimated at VND733,400 billion, up 10.1% over the same period in 2023.
The Ministry of Finance has just released a report summarizing and evaluating the implementation of value-added tax (VAT) reduction according to Resolution No. 110/2023/QH15.
Accordingly, the Ministry of Finance said that in 2022, the implementation of the VAT reduction policy under Resolution No. 43/2022/QH15 has supported businesses and people with a total of about VND 51,400 billion, contributing to stimulating increased domestic consumption. Total retail sales of goods and consumer service revenue in 2022 increased by 19.8% compared to 2021.
In 2023, the 2% VAT reduction under Resolution No. 101/2023/QH15 in the last 6 months of 2023 has supported businesses and people with a total of about VND 23,400 billion. Total retail sales of goods and consumer service revenue in the third quarter of 2023 increased by 7.5% over the same period last year; in the fourth quarter of 2023, it increased by 9.3% over the same period last year. In general, in 2023, total retail sales of goods and consumer service revenue increased by 9.6% over the previous year.
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VAT reduction causes state budget to lose nearly 15,500 billion VND in revenue in the first 4 months of the year |
In 2024, the 2% VAT reduction under Resolution No. 110/2023/QH15 in the first 4 months of 2024 has supported businesses and people with about VND 15,488 billion. Excluding February with Tet holiday, the average VAT reduction in January and March at the import stage is about VND 1,500 billion/month and the domestic stage is expected to be about VND 2,500 billion/month.
According to the General Statistics Office, total retail sales of goods and consumer service revenue in the first four months of 2024 increased by 8.5% over the same period last year.
According to information on recent socio-economic developments in the Statistical Report on the socio-economic situation in the first 4 months of 2024 of the Ministry of Planning and Investment, many positive points were shown.
Specifically, the GDP growth rate in the first quarter of 2024 is estimated to increase by 5.66% over the same period last year, higher than the growth rate in the first quarter of 2020-2023. The total import and export turnover of goods reached 238.88 billion USD, up 15.2% over the same period last year; of which exports increased by 15%, imports increased by 15.4%. The trade balance of goods had a surplus of 8.4 billion USD.
In the first 4 months of 2024, total state budget revenue is estimated at 733,400 billion VND, equal to 43.1% of the estimate, up 10.1% over the same period in 2023.
Although the 2% VAT reduction policy has a positive impact on businesses and people, the Ministry of Finance also acknowledges some shortcomings and limitations.
Accordingly, this policy does not apply to all goods and services subject to the 10% VAT rate, but excludes some groups of goods and services, leading to some difficulties in determining goods and services that are not eligible for VAT reduction; the application of VAT reduction has not been unified at the import, production and consumption stages... leading to difficulties for both businesses and enforcement agencies (Customs, Tax)...
Based on the assessment of the results achieved by the 2% VAT reduction solution according to Resolution No. 110/2023/QH15, the Ministry of Finance proposes to continue reducing the VAT rate by 2% as in this Resolution.
Specifically, tax reduction will be applied to groups of goods and services currently subject to a tax rate of 10% (to 8%), except for the following groups of goods and services: 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.
The applicable period is from July 1, 2024 to December 31, 2024.
The draft Resolution of the National Assembly and the draft Decree of the Government on reducing the VAT rate by 2% are being posted by the Ministry of Finance for public comments.
Source: https://www.anninhthudo.vn/giam-gan-15500-ty-dong-thue-vat-thu-ngan-sach-van-tang-hon-10-trong-4-thang-dau-nam-post577902.antd
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