Provincial National Assembly Delegation gives comments on draft Laws

Comrade Thai Thi An Chung - Member of the Provincial Party Executive Committee, Deputy Head of the Provincial National Assembly Delegation chaired.

Attending the conference were National Assembly Deputies, representatives of the Provincial People's Council Standing Committee, Provincial People's Council committees, departments, branches, experts and collaborators in law making.

Proposal to not impose 5% tax on fertilizers

First issued in 1997 to replace the turnover tax, the Law on Value Added Tax was comprehensively amended in 2008 and further amended and supplemented in 2013, 2015 and 2016.

After 15 years of implementation since 2008, the Law on Value Added Tax has revealed a number of shortcomings and limitations that need to be amended to perfect the legal framework in this field.

The draft Law on Value Added Tax (amended) consisting of 4 Chapters and 18 Articles will be submitted to the National Assembly for comments at the 8th Session in October 2024.

The draft adds some contents such as removing the regulation allowing not paying output tax but being able to deduct input tax; adding some new regulations on taxpayers; clarifying tax rates and tax collection methods for business activities on digital platforms...

At the conference, delegates gave their opinions on the contents of invoice issuance time, tax rates, subjects not subject to value added tax, tax deduction method, value added tax refund regulations; and procedures for value added tax refund.

Many delegates proposed to maintain the current tax rate, not subject to the 5% tax rate on fertilizers, specialized machinery and equipment serving agricultural production, and plant protection services to ensure encouragement for agricultural, rural and farmer development; add subjects not subject to value added tax for securities trading activities...

Concerns about some items subject to special consumption tax

Special Consumption Tax Law No. 27/2008/QH12 took effect from April 1, 2009. Up to now, it has been amended and supplemented 4 times to handle practical problems and to suit tax management requirements at each stage.

The Draft Law on Special Consumption Tax (amended) consisting of 4 Chapters and 12 Articles will be submitted to the National Assembly for comments at the 8th Session in October 2024.

Draft Law amending 10 Articles of the current Law on Special Consumption Tax: including Articles regulating taxable subjects; non-taxable subjects; taxpayers; tax basis; tax price; tax rate; tax refund, tax deduction; tax reduction; effective date; implementation organization and adding 1 Article regulating the time of determining special consumption tax.

Accordingly, the subjects subject to special consumption tax include 11 groups of goods, including: Tobacco; alcohol; beer; motor vehicles with less than 24 seats; two-wheeled motorbikes, three-wheeled motorbikes with a cylinder capacity of over 125cm³; airplanes, helicopters, gliders and yachts; gasoline of all kinds; air conditioners with a capacity of 90,000 BTU or less; playing cards; votive paper and votive goods; soft drinks according to Vietnamese standards with sugar content over 5g/100ml and 6 service groups: Discotheque business, massage business, karaoke, casino business, electronic games with prizes, betting business, golf business, lottery business.

The basis for calculating special consumption tax using the percentage method is the taxable price of taxable goods and services and the tax rate. The amount of special consumption tax payable is equal to the special consumption taxable price multiplied by the special consumption tax rate.

At the conference, delegates gave their opinions on the contents of non-taxable subjects, special consumption tax calculation prices for organizations and individuals doing business in production, special consumption tax tables, and tax rates.

Some delegates suggested that the increase in special consumption tax should be consistent with reality, creating favorable conditions for manufacturers to operate; and that special consumption tax should be abolished on air conditioners, gasoline, and votive paper.

Increase special consumption tax on tobacco products; have a roadmap to increase special consumption tax on alcohol and beer; add fireworks and components for producing fireworks to the list of subjects subject to special consumption tax.

Delegates also contributed opinions on some sentences, words, and arranged some contents appropriately to ensure the effectiveness of the draft Law as well as the benefits for the state, businesses and people.

Concluding the conference, comrade Thai Thi An Chung - Deputy Head of the Provincial National Assembly Delegation acknowledged and highly appreciated the delegates' comments on the draft Law on Value Added Tax (amended) and the draft Law on Special Consumption Tax (amended).

The comments will be studied, synthesized, supplemented and sent to the National Assembly Standing Committee by the Provincial National Assembly Delegation.