Extend tax reduction period, regulate ceiling price of textbooks

On May 24, continuing the 5th session, chaired by National Assembly Chairman Vuong Dinh Hue, the National Assembly listened to reports and discussed in the hall about a number of draft laws and contents with different opinions.

Kỳ họp Quốc hội thứ 5: Kéo dài thời gian giảm thuế, quy định giá trần sách giáo khoa

On May 24, the National Assembly continued the third working day of the 5th Session at the National Assembly House under the chairmanship of National Assembly Chairman Vuong Dinh Hue. (Source: quochoi.vn)

Continue to implement 2% VAT reduction

On the afternoon of May 24, presenting the Report on continuing to implement the policy of reducing value-added tax by 2% according to the Resolution of the National Assembly, Minister of Finance Ho Duc Phoc said that in 2022, to support businesses and people to recover after the Covid-19 pandemic, the Government has submitted to the National Assembly for approval a Resolution on fiscal and monetary policies to support the Socio-economic Recovery and Development Program, including regulations to reduce the VAT rate for most items currently subject to a tax rate of 10% to 8%.

In 2023, the Government proposed to continue implementing the 2% VAT reduction policy stipulated in Point a, Clause 1.1, Article 3 of the National Assembly's Resolution on fiscal and monetary policies to support the Socio-economic Recovery and Development Program from July 1, 2023 to December 31, 2023.

Some opinions suggested considering continuing to implement the VAT reduction policy at the present time because of concerns about the effectiveness of the policy and concerns about the impact of reduced revenue in the context of the very difficult revenue task in 2023. This may cause passivity in the process of implementing the 2023 State budget estimate approved by the National Assembly. The Government's impact assessment report has not yet specifically assessed the expected impacts of the policy on the ability to stimulate consumption and promote production and business activities in the second half of 2023 as set out in the target.

Regarding policy impacts, Chairman of the Finance and Budget Committee Le Quang Manh said that in the context of the economic situation and the expected difficulties in budget collection in 2023, he requested the Government to explain more specifically about the plan and solutions to compensate for these revenue reductions in addition to measures to strengthen management to ensure revenue collection tasks and the ability to balance the budget within the 2023 State budget deficit approved by the National Assembly.

Regarding the policy's effectiveness, the majority of opinions in the TCNS Committee agreed that the VAT reduction policy will be applied from July 1, 2023 to December 31, 2023.

However, some opinions say that implementing the policy in the last 6 months of 2023 may not be enough time for the policy to take effect, making it difficult for the policy to achieve its set goals. Therefore, it is recommended to consider extending the policy application period compared to the Government's proposal to ensure stability, proactive implementation and enough time for the policy to take effect.

Minister of Finance Ho Duc Phoc presented a report on continuing to implement the policy of reducing value added tax by 2% according to the National Assembly's Resolution. (Source: quochoi.vn)

Regulations on textbook prices like other items

Presenting her views on textbook price management, speaking at the Hall, delegate Nguyen Thi Kim Thuy - National Assembly Delegation of Da Nang City proposed that the Government regulate the textbook price framework including ceiling price and floor price as with items priced by the State.

Delegate Nguyen Thi Kim Thuy said that, previously, when discussing the price of textbooks, she raised the fact that buying textbooks has become a burden for many parents. The main reason is that the units that distribute books through schools always sell textbooks with a large number of reference books.

The Ministry of Education and Training has taken this opinion into account and issued a Directive requiring an end to the practice of packaging textbooks and reference books together to force students to buy reference books in any form. Through monitoring, this Directive has basically been seriously implemented.

However, when studying the draft Law on Prices (amended) submitted to the National Assembly for consideration and approval, delegate Nguyen Thi Kim Thuy did not see the draft reflecting the opinions of the Minister, Head of the Drafting Committee, nor did she see any explanation, although Report No. 480 of the National Assembly Standing Committee accepting, explaining, and revising this draft law was 112 pages long.

Delegate Nguyen Thi Kim Thuy suggested that if this National Assembly finds that the policy of socializing the compilation of textbooks proposed by the 13th National Assembly has many shortcomings, Resolution 88 should be revised and the implementation of this policy should be terminated.

In the opposite case, the National Assembly should add necessary provisions to the Law on Prices (amended) to ensure consistency in policy, and should not allow the legislative body to issue contradictory regulations. One side encourages socialization, the other side creates loopholes for unfair competition, limits socialization, and even risks eliminating the socialization of textbook compilation.

Delegate Nguyen Thi Kim Thuy - National Assembly Delegation of Da Nang City proposed that the Government regulate the price framework for textbooks, including ceiling and floor prices as with items priced by the State. (Source: quochoi.vn)

Clarifying the above content, Minister of Finance Ho Duc Phoc said that after reporting to the Finance and Budget Committee and the National Assembly Standing Committee, the agencies all agreed not to regulate the floor price of textbooks, but only regulate the ceiling price to ensure the rights of book buyers, students and parents.

According to the 2012 Law on Prices, textbooks are not on the list of items priced by the State, but are declared by businesses to the Ministry of Finance. Meanwhile, textbooks are in the group of essential educational materials for students; affecting social security, especially for people in disadvantaged areas.

According to the Resolution of the 3rd session of the 15th National Assembly in June 2022, textbooks will be added to the list of goods and services priced by the State when the Law on Prices is amended. While waiting for the Law on Prices to be amended, the Government directs relevant ministries to take measures to reduce textbook prices in accordance with socio-economic conditions; continue to implement policies to support or subsidize textbooks for students in difficult circumstances, in mountainous and highland areas, and ethnic minorities.

Regarding textbook prices, at the 4th session of the 15th National Assembly, Minister of Education and Training Nguyen Kim Son affirmed that the Ministry will coordinate with the Ministry of Finance to carry out necessary procedures to submit to the Government and the National Assembly a stable and long-term solution on the issue of textbook prices.

Minister of Education and Training Nguyen Kim Son also said that the Ministry has issued Circular 21/2014/TT-BGDDT regulating the management and use of reference publications in preschool, general education and continuing education institutions.

It clearly states that teachers and education managers at all levels are not allowed to abuse their positions to carry out or participate in forcing or mobilizing students, trainees or parents of students, trainees to buy reference publications in any form. Therefore, the Minister hopes that localities, together with the Ministry of Education and Training, will continue to control this in schools in their areas to avoid causing public outrage.

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