According to the 2025 Law and Ordinance Development Program, adjusting the 2024 Law and Ordinance Development Program, the draft Law on Value Added Tax (VAT) (amended) continues to be discussed and considered for approval by the National Assembly at the 8th Session.
At the 6th conference of full-time National Assembly deputies, National Assembly deputies focused on contributing opinions on the following contents: 5% tax rate; tax exemption and reduction to encourage the development of the cultural sector; responsibilities of taxpayers and tax authorities in VAT refunds and a number of other related issues...
Two views on 5% VAT on fertilizers
Regarding the regulation on transferring fertilizers, machinery, specialized equipment for agricultural production, and fishing vessels from non-taxable items to those subject to a 5% tax rate, National Assembly delegate Mai Van Hai (National Assembly delegation of Thanh Hoa province) proposed to keep fertilizers, pesticides, machinery, specialized equipment for agricultural production, and fishing vessels as non-taxable items as per current regulations.
According to the delegate, VAT is an indirect tax, and the final consumer is the one who bears VAT. The change of fertilizers and pesticides to a 5% tax rate will have a major impact on farmers because the prices of these items will increase when the revised VAT takes effect, leading to an increase in the cost of agricultural products.
Delegate Mai Van Hai also said that currently, the issue of mechanization in agricultural production in many places is still very weak, so in order for this sector to develop, there should be no tax imposed on the purchase and sale of specialized machinery and equipment for agricultural production and fishing vessels.
Regarding the above content, National Assembly delegate Duong Khac Mai (Deputy Head of the National Assembly delegation of Dak Nong province) said that if the current law is maintained, fertilizer manufacturing enterprises will not be able to deduct input VAT. This tax is calculated into production costs, so it will increase product prices, thereby reducing competitiveness compared to imported products. If fertilizers are subject to VAT at a tax rate of 5%, it will resolve the problems related to input VAT refunds for enterprises. However, it is certain that increasing fertilizer prices will affect agricultural production and farmers' lives.
The delegate said that, according to the report of the National Assembly Standing Committee, domestic fertilizer production enterprises reported that they would reduce prices, but according to the laws of market economy, this cannot be guaranteed to happen or not, because the State cannot force enterprises to reduce fertilizer prices.
According to delegate Duong Khac Mai, the option should be to keep the current regulations - fertilizer products are not subject to VAT.
Vice Chairman of the Law Committee Nguyen Truong Giang analyzed that VAT is an indirect tax, levied directly on consumers. If we think that tax is imposed to reduce selling prices, it is not convincing and cost price and selling price are different. The selling price may be below cost price, but in the context of a market economy, it is important to be consistent with international standards.
According to the assessment of the drafting agency, if the VAT rate of 5% is applied as in the draft, about 5,700 billion VND will be collected; after deducting about 1,500 billion, the State will collect about 4,200 billion VND, but according to delegates, economic experts say that the budget will not collect that amount of money.
From there, delegate Nguyen Truong Giang proposed that it is necessary to make the most accurate assessment of how much businesses will be refunded if a 5% VAT is imposed, how much the budget will collect, and how much the people will be affected.
Continue to complete the Law Project
Contributing opinions on tax exemptions and reductions to encourage the development of the cultural sector, National Assembly delegate Bui Hoai Son (National Assembly delegation of Hanoi) said that tax policies in general, and VAT in particular, have great significance for cultural development. Even in some countries in the world, although they do not have a Ministry of Culture, just by encouraging and motivating policies such as tax exemptions and reductions, their cultural and artistic sectors have developed very well.
The delegate said that in our country, through many studies, conferences, and seminars, we have seen the bottleneck in taxes in supporting and mobilizing resources for cultural development. Therefore, tax exemption and reduction (or at least maintaining the tax rate) is a specific, practical and sincere solution that we can do to develop culture, thereby creating conditions to revive social ethics and develop the country sustainably from culture.
According to delegate Bui Hoai Son, although the draft Law on VAT (amended) this time has some adjustments and amendments, there are still some shortcomings. In particular, in Clause 12, Article 5, capital contributed by the people and humanitarian aid to cultural establishments are still subject to tax. This does not encourage contributions from support sources for cultural development at the grassroots level. Therefore, the Drafting Committee of the Law Project should carefully study this content.
At the same time, at point e, clause 26, Article 5, creating conditions for collectors and individuals to buy Vietnamese antiques from abroad, thereby proving national sovereignty over culture and history, preserving cultural and historical values of the nation should be encouraged. Therefore, import tax should be exempted for individuals. Tax should only be imposed when they buy and sell antiques that are not from Vietnam, domestically or for export.
The delegate also pointed out that, in Article 9, cultural activities, exhibitions, physical education, sports, art performances, film production, film import, distribution and screening have enjoyed a tax rate of 5% according to the current tax law. These are areas that help improve people's spiritual life and deserve tax incentives. However, after many resolutions of the Party, policies of the State, and opinions of Party and State leaders that cultural development needs to be prioritized, we have implemented the opposite method of increasing the tax to 10%. Therefore, delegate Bui Hoai Son suggested that the Drafting Committee of the VAT Law (amended) review this content.
Concluding the discussion, Vice Chairman of the National Assembly Nguyen Duc Hai suggested that the National Assembly Standing Committee coordinate with the Government to direct the agency in charge of reviewing and drafting and relevant agencies to seriously absorb the opinions of National Assembly deputies and National Assembly delegations, agencies and organizations to continue to complete the draft Law in accordance with regulations to submit to the National Assembly for discussion and consideration and approval at the 8th Session.
Source: https://kinhtedothi.vn/dbqh-nen-mien-giam-thue-de-khuyen-khich-huy-dong-nguon-luc-cho-phat-trien-van-hoa.html
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