Support for business recovery

Continuing to exempt and reduce Value Added Tax will be a boost for businesses to recover soon and continue to maintain and develop production and business. Photo: Quang Vinh.

Continue to implement in the last 6 months of the year

At the discussion session, agreeing with the Government's proposal and the preliminary examination of the Finance and Budget Committee on VAT reduction, Vice Chairwoman of the National Assembly Nguyen Thi Thanh said that the economy is in the process of recovery and still faces many difficulties. Therefore, continuing to exempt and reduce VAT will create motivation for taxpayers to recover soon, continue to maintain and develop production and business, contribute back to the state budget, and contribute to increasing budget revenue in the coming time.

According to Ms. Thanh, with these items, the motivation to collect or develop production to increase tax revenue in the coming years will increase. At the same time, maintaining production, maintaining increased revenue, stimulating consumption. Therefore, there is room for us to agree with the Government's proposal to continue to reduce in the last 6 months of 2024, not in the long term.

Sharing the same view, Vice Chairman of the National Assembly Nguyen Khac Dinh agreed with the reduction of value added tax by 2% and included it in the general resolution of the 7th Session of the 15th National Assembly. Because when discussing the socio-economic situation, the National Assembly deputies discussed and agreed to extend it until the end of December 2024.

According to Chairman of the National Assembly's Law Committee Hoang Thanh Tung, the National Assembly voted to approve the adjustment of the 2024 ordinance program and agreed to add this content to the program of the 7th Session, so the legal basis for submission to the National Assembly at this session is sufficient for the National Assembly to decide.

“If the National Assembly decides, this will be the third time the National Assembly has decided to extend the implementation period of this policy. To ensure strictness, 20 minutes should be allocated for the submitting agency and the reviewing agency to report, but there is no need to arrange for discussion because when the National Assembly discussed the socio-economic situation, many National Assembly deputies discussed this issue,” said Mr. Tung.

Speaking at the meeting, National Assembly Chairman Tran Thanh Man said that regarding Value Added Tax (VAT), the Politburo has agreed in principle and has issued a conclusion document. Recently, at the discussion session on socio-economics, National Assembly deputies also highly agreed to continue maintaining the policy of reducing VAT by 2% in the last 6 months of the year.

The National Assembly Chairman proposed that the Government submit a summary report, the Finance and Budget Committee submit an inspection report, and the National Assembly Secretary General submit an official dispatch requesting National Assembly deputies to discuss in groups. After that, the report will be compiled and included in the General Resolution of the 7th Session.

The National Assembly Chairman emphasized that this approach would ensure democracy because without reading the submission and the verification report at the plenary session of the National Assembly, the delegates would still discuss the content in groups.

Many businesses expect that the continued reduction of VAT by 2% will help them recover. Photo: Quang Vinh.

Amending and supplementing tax and fee laws according to market principles

In his concluding remarks, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized that the National Assembly Standing Committee agreed to submit to the National Assembly for consideration the decision to reduce VAT according to the Government's Proposal. At the same time, he noted that the organization and implementation of the policy must ensure the set goals and avoid difficulties and obstacles during the implementation process. The Government is responsible for implementing the collection task without affecting the revenue estimate and the state budget deficit in 2024 according to the National Assembly's resolution, ensuring revenue sources for the estimated expenditure tasks and urgent needs arising.

At the same time, the organization implementing the policy must ensure the set goals, not allowing difficulties or problems to occur during the implementation process; be responsible for directing the implementation of collection tasks without affecting the revenue estimates and state budget deficit in 2024 according to the Resolution of the National Assembly, ensuring revenue sources for estimated expenditure tasks and urgent needs arising.

Implement the progress of amending and supplementing tax laws on schedule, fully institutionalize the Party's policies and tax reform strategies, including VAT. In particular, pay attention to the viewpoint of amending and supplementing tax laws based on market principles and international practices, improving the efficiency of tax management, applying reasonable tax rates, orienting, and implementing tax increases according to the roadmap.

The National Assembly Standing Committee requests the Government to promptly complete the draft Resolution dossier and send it to the National Assembly and the reviewing agencies. The Finance and Budget Committee will officially review and submit it to the National Assembly for consideration and discussion in groups within an appropriate time arranged by the National Assembly Office for consideration and decision to include it as an item in the General Resolution of the session.

Businesses have a basis to share difficulties with consumers

Discussing this issue, Prof. Dr. Dinh Trong Thinh (Academy of Finance) said that in the context of the economy facing many challenges and difficulties, the application of VAT reduction is extremely necessary for people and businesses. Accordingly, reducing VAT from 10% to 8% for many items is a positive move to stimulate spending, contributing to promoting GDP growth. Because reducing VAT will help reduce direct costs for buyers, the tax reduction will stimulate consumers to shop more, and manufacturing and trading enterprises will have better capital turnover. In addition, the 2% reduction in VAT for raw materials, spare parts, equipment, etc. also helps reduce production input costs, giving businesses room to reduce product prices, sharing difficulties with consumers. Especially in the current context, it is necessary to increase support for businesses facing difficulties due to reduced export orders, thereby promoting inventory settlement and increasing capital turnover. Therefore, it can be affirmed that this policy will create motivation, helping businesses restore production and business in the coming time.

TX

Source: https://daidoanket.vn/tiep-tuc-giam-thue-vat-2-tro-luc-cho-doanh-nghiep-phuc-hoi-10283324.html