Instead of ending in June 2024, the 2% value-added tax (VAT) reduction policy will be extended until the end of 2024.
According to the Resolution of the 7th Session of the 15th National Assembly, which was just passed, the National Assembly has officially agreed to reduce VAT by 2% (from 10% to 8%) for a number of groups of goods.
Specifically, according to the Resolution, the value-added tax rate will continue to be reduced by 2% for groups of goods and services specified in Resolution No. 43 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program from July 1, 2024 to December 31, 2024.
Thus, the 2% reduction in value added tax rate will be applied to groups of goods and services currently subject to a 10% value added tax rate (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.
The National Assembly assigned the Government to organize the implementation of policies to ensure the achievement of the set goals; to be responsible for managing and implementing revenue collection tasks, without affecting the revenue estimates and state budget deficit in 2024 according to the Resolution of the National Assembly. To ensure revenue sources for estimated expenditure tasks and urgent needs arising.
Previously, according to the report, the Government said that the socio-economic situation in the first 3 months of 2024 showed many positive points. However, after a long period of fighting the COVID-19 pandemic, domestic enterprises are in the process of recovery, so production and business activities are still facing difficulties. Accordingly, after the first quarter of 2024, the number of enterprises withdrawing from the market was 73,900, an increase of 22.8% over the same period last year.
"In the coming time, the world and regional situation will continue to evolve rapidly, complicatedly and unpredictably; the recovery of major trade partners will remain slow, and there will be risks of disruption to global supply chains and value chains," the Government said.
Domestically, although many industries and sectors continue to recover and have positive prospects; many policies and solutions to remove difficulties and obstacles have been and are proving effective, difficulties and challenges outweigh opportunities and advantages. Domestic aggregate consumer demand is considered an important driving force to promote economic growth. Therefore, it is necessary to continue to have financial policy solutions to promote domestic aggregate consumer demand.
Therefore, the Government proposes to consider and allow the continued implementation of the policy of reducing VAT by 2% for a number of groups of goods and services currently subject to a VAT rate of 10% in the last 6 months of 2024 (from July 1, 2024 to December 31, 2024).
The Government assessed that applying the policy of reducing VAT rate by 2% for the last 6 months of 2024 will reduce revenue by about 24,000 billion VND.
According to the Report of the National Assembly's Supervision Delegation on the implementation of Resolution No. 43, assessing the results of the implementation of the tax exemption and reduction policy, the report of the National Assembly's Supervision Delegation shows that the policy of reducing 2% VAT rate for groups of goods and services currently applying a tax rate of 10% (except for some groups of goods and services that have been specifically regulated) has achieved positive results.
Specifically, the expected VAT reduction when developing the program is 49,400 billion VND. The actual amount is 44,458 billion VND, of which the reduction in the State budget revenue in 2022 is 41,498 billion VND, the reduction in the State budget revenue in January 2023 is 2,960 billion VND, equal to 90% of the expected amount.
The application of policies to support businesses and people is applied to all organizations and individuals, regardless of business size. The policy has a dual effect, helping to reduce the cost of goods and services, thereby increasing purchasing power, promoting production and business, creating more jobs for workers, and restoring and developing the socio-economy.
At the same time, applying this policy also contributes to controlling inflation, stabilizing the macro-economy and ensuring social security in conditions of inflation, prices and high input material costs for production.
According to Thuy An/VTV
Source: https://doanhnghiepvn.vn/kinh-te/tiep-tuc-giam-2-thue-vat-den-het-nam-2024/20240630094045252
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