Reduce immediate revenue, increase sustainable revenue

Since the beginning of 2025, the Government has continuously issued policies to extend and reduce taxes and land rents. Specifically, a 2% reduction in value-added tax, a reduction in environmental protection tax, and exemption of registration fees for electric cars... In particular, this April, the Government has consecutively issued Decree 82/2025/ND-CP on extending the deadline for tax and land rent payments in 2025 and Decree 87/2025/ND-CP on reducing land rents in 2024. These are not only short-term financial support solutions but have been implemented over many years, showing that the State has accepted a reduction in immediate revenue to stimulate purchasing power, unblock capital flows, and create momentum for businesses to recover production and business and develop.

According to statistics from the Phu Yen Tax Department (before the reorganization), in 2024 alone, the total amount of tax and land rent that people and businesses in the province will receive reduced or extended will be up to nearly 970 billion VND. Of which, value added tax will be reduced by 350 billion VND, environmental protection tax will be reduced by 320 billion VND, tax payment and land rent will be extended by 270 billion VND... This is not a small number, accounting for nearly 20% of the province's total budget revenue, but the ripple effect it creates is many times greater.

Many businesses said that these tax policies have helped them “keep the fire burning” in production, maintain jobs and continue to invest in the context of high input costs while product output is facing difficulties. Many individual business households have also reduced pressure thanks to tax extensions and reduced payables.

It can be said that during the economic recovery period, instead of focusing on collecting the right amount of revenue, the Tax sector has actively implemented policies to nurture long-term revenue sources for the budget. A notable result is that despite implementing a series of policies to reduce and extend taxes and land rents, the total state budget revenue in the province in 2024 still reached more than VND 5,451 billion, reaching 101.2% of the estimate assigned by the province, equal to 129.8% over the same period last year. In the first quarter of 2025, the whole province collected VND 1,317 billion in budget revenue, reaching 22.3% of the estimate assigned by the province, equal to 103.3% over the same period last year. This is clear evidence of the effect of "reducing revenue in the short term to increase sustainable revenue". Because when businesses have the opportunity to recover, invest in production, and expand their scale, the source of revenue will naturally increase over time. This also shows that tax exemptions and reductions do not mean loss of revenue, if implemented strategically. On the contrary, sharing resources at the right time also helps to foster a stable, long-term source of revenue.

In a broader view, tax reduction and extension policies are not simply fiscal policies but also express a very clear message: The State always accompanies the people and businesses, especially in difficult times. It is this companionship that creates trust - the most important factor in economic recovery. When businesses believe in the State's support, they will boldly invest and expand their scale. When people see fairness in policy implementation, they will proactively comply with their tax obligations and contribute to the budget.

In 2025, the economy is forecast to face many challenges. Therefore, the expectation placed on the Tax sector is not only to continue to maintain support policies, but also to further improve implementation efficiency, taking taxpayers as the center of service. When tax policies are no longer barriers, but become a support; when tax authorities are not only collectors, but companions - that is when taxpayers dare to do big business, think far and think long-term, contributing to the sustainable development of local socio-economics.

Source: https://baophuyen.vn/kinh-te/202504/giam-thu-truoc-mat-tang-thu-ben-vung-1c34f76/