Additional scope of revised policy content
At the meeting, delegates listened to Minister of Finance Ho Duc Phoc present the Proposal; Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh present the Report on the examination of the draft Law on Value Added Tax (amended).
Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh stated that the Standing Committee of the Committee agreed on the necessity of amending the Law to address practical shortcomings as well as perfect the collection policy, in line with the goals set out in the Socio-Economic Development Strategy, the Tax System Reform Strategy to 2030 and Plan No. 81/KH-UBTVQH15 of the National Assembly Standing Committee to implement Conclusion No. 19-KL/TW of the Politburo.
National Assembly Chairman Vuong Dinh Hue delivers a speech concluding the session. Photo: Van Diep/VNA
Regarding the objectives, viewpoints and scope of the amendments, the Report has identified the viewpoints and purposes of the amendments as general orientations for all tax law projects but not really following the specific objectives of the Tax Reform Strategy for the Law on Value Added Tax. Accordingly, some specific orientations in the Tax Reform Strategy related to value added tax have not been implemented, such as the comprehensive orientation, expanding the revenue base, moving towards basically applying a single tax rate and increasing tax rates according to the roadmap. It can be seen that the group of goods and services that are not subject to tax and the group subject to a 5% tax rate have not been significantly narrowed.
Minister of Finance Ho Duc Phoc presents the report. Photo: Van Diep/VNA
Some opinions say that many of the amended and supplemented contents are those that have been stipulated in sub-law documents or to be consistent with the provisions of specialized laws. The number of amended and supplemented articles and clauses with new contents compared to current regulations on value added tax is not large, so it is not really commensurate with the scale of the comprehensively amended Law after a long period of implementation. Therefore, it is recommended that the Government closely follow the goals and orientations identified in the Tax System Reform Strategy to 2030 to consider supplementing the scope of amended policy contents, ensuring comprehensiveness and comprehensiveness for revenue sources, at least in the medium term of the value added tax policy system.
In addition, there are opinions that, with the relatively limited amendment content shown in the draft Law dossier, in the context of the economy not yet recovering after the pandemic and currently still implementing a 2% value-added tax reduction, it is recommended to consider further the necessity of amending the Law on Value-Added Tax at the present time.
Proposal to adjust regulations on annual revenue threshold
Clause 25, Article 5 of the draft amended Law stipulates that goods and services of business households and individuals with annual revenue of VND 100 million or less are not subject to value added tax under the provisions of the current Law, which is "below the level prescribed by the Government".
Regarding this content, the Standing Committee of the Finance and Budget Committee believes that amending and adjusting the regulations on the annual revenue threshold not subject to value added tax is necessary to suit the current socio-economic development situation and needs to be specifically regulated in the Law to establish a clear legal basis. Therefore, it is recommended that the Government calculate and consider related factors on the general level of current policies such as the family deduction level of personal income tax, the new multidimensional poverty line, GDP/capita at present has increased more than 2 times compared to 2013 when the revenue threshold of 100 million VND was established... to specifically regulate this threshold in the draft Law.
Chairman of the National Assembly's Law Committee Hoang Thanh Tung speaks. Photo: Van Diep/VNA
At the meeting, Chairman of the National Assembly's Law Committee Hoang Thanh Tung expressed his opinion that to ensure the transparency and specificity of the law, research should be conducted to have specific regulations in the law, not assigning the Government to regulate as proposed by the Government.
Sharing the same view, General Secretary and Head of the National Assembly Office Bui Van Cuong said that the limit of 100 million VND stipulated in the current Law has had many shortcomings due to adjustments in the consumer price index and GDP per capita.
"The adjustment of the limit of 100 million VND is appropriate. However, to ensure publicity, transparency and immediate application when the Law comes into effect, based on the average GDP growth rate per capita, the inflation rate in the socio-economic development strategy as well as the practical situation, I agree with the opinion of the Appraisal Agency, suggesting that the Government study and regulate the service revenue level of business households and individuals not subject to value added tax right in the draft Law", said Mr. Bui Van Cuong.
View of the meeting. Photo: Van Diep/VNA
Speaking at the meeting, regarding non-taxable subjects, National Assembly Chairman Vuong Dinh Hue noted that the draft Law has listed 26 non-taxable groups, transferring 10 groups of goods to the 5% and 10% taxable categories. However, many businesses have proposed to arrange these 26 groups of subjects to be compatible with the classification of business lines in the system of economic sector indicators for the statistical field, ensuring compatibility between: accounting - statistics - tax, for easy monitoring, easy lookup and no omissions.
Regarding specific subjects not subject to value added tax, the National Assembly Chairman suggested further study of scientists' opinions on the proposal to add monographs and journalism to the subjects not subject to value added tax.
According to VNA/Tin Tuc Newspaper
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