Proposing the National Assembly to reduce value added tax in May
The Government has just proposed to draft a National Assembly resolution on reducing value-added tax (VAT) from 10% to 8% to support businesses and people to overcome difficulties.
In the recently issued resolution, the Government assigned the Ministry of Finance to receive opinions from Government members in the process of developing and completing the draft resolution of the National Assembly in accordance with regulations, and at the same time be responsible for the content, data, reports and proposals.
The Government assigned the Minister of Justice, authorized by the Prime Minister, to report to the National Assembly Standing Committee on behalf of the Government to add the draft resolution on VAT reduction to the law and ordinance making program in 2023.
In addition, the Government also proposed that the National Assembly Standing Committee allow the drafting of this resolution according to simplified procedures and submit it to the National Assembly for approval at the May 2023 session.
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| VAT is expected to be reduced from 10% to 8% to support businesses and people. Photo: Nam Khanh |
The Ministry of Finance is responsible for providing complete records and relevant documents to the Ministry of Justice as prescribed, ensuring the reporting progress of the National Assembly Standing Committee as required.
“The proposal should mention the VAT reduction, and add the content that the Government respectfully requests the National Assembly Party Delegation and the National Assembly Standing Committee to report and ask for the Politburo's opinion on the policy of reducing VAT to support businesses and people to overcome current difficulties,” the Government noted.
In mid-April, the Ministry of Finance proposed a 2% reduction in VAT rates for all goods and services subject to a 10% tax rate in 2023 (down to 8%).
According to the Ministry of Finance, implementing the above plan aims to ensure the right goal of stimulating 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.
Assessing the impact of the policy, the Ministry of Finance said that the expected reduction in state budget revenue is about 5.8 trillion VND/month, if applied in the last 6 months of the year, it is equivalent to about 35 trillion VND.
To overcome and compensate for the impact on budget revenue, the Ministry of Finance will coordinate with ministries, branches and localities to effectively implement tax laws; at the same time, resolutely manage state budget revenue.