The Standing Committee of the Committee proposed that the Government ensure the deadline for the termination of the value-added tax reduction policy and not continue to propose extending the policy's implementation period.
On the evening of November 26, at the National Assembly House, the National Assembly Standing Committee gave opinions on the National Assembly's draft Resolution on reducing value-added tax.
According to the Government's Proposal, the purpose of issuing the Resolution is to stimulate consumption, in line with the current economic context, thereby promoting production and business activities to recover and develop soon to contribute back to the State budget as well as the economy to implement the 5-year Socio-Economic Development Plan 2021-2025, the Annual Socio-Economic Development Plan, and the Economic Restructuring Plan for the period 2021-2025.
According to the draft Resolution, the value added tax rate will be reduced by 2%, applicable 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, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax.
Applicable period from January 1, 2025 to June 30, 2025.
Presenting the Verification Report, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh said that the majority of opinions in the Standing Committee of the Committee agreed with the necessity of issuing a Resolution to continue applying the policy of reducing value-added tax, contributing to reducing costs and prices of goods and services, thereby stimulating consumption, maintaining jobs for workers, supporting people and businesses to continue to maintain the recovery momentum, promoting production and business activities to contribute back to the state budget and the economy.
The majority of opinions in the Standing Committee of the Committee agreed with the Government's proposal to continue to allow the application of the policy from January 1, 2025 to June 30, 2025. However, some opinions said that the proposal to issue and implement the policy to reduce value added tax in the past time was carried out relatively fragmentedly, partly reflecting the quality of forecasting work and the vision of the proposed policy issuance, affecting the initiative of enterprises in planning production and business...
Therefore, in order to move towards stability and predictability of the value-added tax policy system while ensuring consistency with the effective date stipulated in the Law on Value-Added Tax (amended), the Standing Committee of the Committee recommends that the Government ensure the expiration date of the value-added tax reduction policy and not continue to propose extending the effective date of the policy.
Through discussion, the National Assembly Standing Committee agreed to submit to the National Assembly for consideration the decision to reduce value-added tax; request the Government to accept the opinions of the National Assembly Standing Committee and the opinions of the appraisal agency to supplement information to increase the persuasiveness of the tax reduction to be submitted to the National Assembly for consideration and decision.
Vice Chairman of the National Assembly Nguyen Duc Hai stated that the National Assembly Standing Committee proposed that the Government have solutions to ensure situation forecasting, more timely policy response, and overcome the situation where a policy is repeatedly submitted to the National Assembly for permission to extend its application, such as the recent reduction in value-added tax.
The Government organizes the implementation of policies to ensure the set goals, not to let difficulties or obstacles arise during the implementation process; is responsible for managing the implementation of revenue collection tasks without affecting the revenue estimates and the State budget deficit in 2025 according to the Resolution of the National Assembly, ensuring revenue sources for estimated expenditure tasks and urgent needs arising./.
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