Ministry of Finance continues to propose series of economic support policies


Financial policies to support businesses and people make an important contribution to the economy's recovery. Illustration photo: Vietnanet
Financial policies to support businesses and people make an important contribution to the economy’s recovery. Illustration photo: Vietnanet

Proposal to reduce and extend payment deadline of many taxes and fees

Minister of Finance Ho Duc Phoc said that in addition to tax and fee solutions, it is still necessary to focus on comprehensive, synchronous and drastic implementation of solutions such as improving the business and investment environment, simplifying procedures; supporting for capital, interest rates, and solving economic difficulties; especially promoting public investment, real estate market, production and business development, promoting exports.

Many says that businesses are in a period of “hardship” when facing many difficulties in production and business. This has had a huge impact on the business situation in general, notably the number of businesses temporarily suspending operations is greater than the number of new businesses.

According to National Assembly deputy Do Thi Lan, (Quang Ninh Delegation, production and business activities of enterprises, especially private enterprises, still have many difficulties and challenges. Private sector investment in the first four months of 2024 only increased 2.4%, while nearly 86,400 enterprises withdrew from the market, an increase of 12.2% over the same period last year, the number of enterprises participating in the market was lower than the number of enterprises withdrawing from the market. Private investment is still low, the number of enterprises expanding production scale only reaches 27% – the lowest level ever.

Therefore, deputy Do Thi Lan proposed the National Assembly to have appropriate fiscal policies to support businesses to invest in stimulating domestic production, and support priority areas for investment and development.

At the ongoing 15th National Assembly session, many National Assembly deputies also proposed that the Government and National Assembly continue to implement policies to maximize the internal strengths of the domestic market, including strengthening the role of fiscal policies such as policies on exemption, reduction, extension of taxes, fees, land use fees…

Facing increasing difficulties and challenges for the economy and business operations, creating great pressure on macroeconomic stability, affecting the recovery and development of many industries and fields, basing on the assessment of the results achieved by the implementation of fiscal policy solutions, the Ministry of Finance has been proactively proposing a series of policies to support businesses and the economy. Specifically, the Ministry of Finance has submitted to the Government a solution to reduce value added tax (VAT) by 2% according to Resolution No. 110/2023/QH15 for the Government to submit to the National Assembly for consideration, allowing to continue implementing the 2% VAT reduction policy for some groups of goods and services that are applying a 10% VAT rate in the last six months of 2024.

In addition, the Ministry of Finance has reported to the Prime Minister to allow the development of a draft Decree to extend the deadline for payment of VAT, corporate income tax (CIT), personal income tax (PIT) and land rent in 2024 with a total deferred amount of nearly VND84,000 billion. The Ministry of Finance is also developing a draft Decree to extend the deadline for payment of special consumption tax (SCT) on domestically produced or assembled cars for four tax periods according to streamlined orders and procedures. It is expected that the total deferred tax amount is about VND8,560 billion. At the same time, the Ministry of Finance is also proposing to continue reducing 36 fees and charges by 10-50% in 2024.

Supporting businesses to access the recovery trend of the world economy

According to National Assembly deputy Mai Van Hai (Thanh Hoa delegation), the actual supervision showing that the 2% VAT reduction policy is highly appreciated by businesses, both stimulating consumption and stimulating production growth. Therefore, Mr. Mai Van Hai proposed the National Assembly to consider allowing the continued implementation of this policy for a period of time suitable to the production situation of businesses in the context that people has still faced many difficulties and the ability of self-recovery and development is not truly sustainable.

Evaluating the proposals to continue implementing fiscal policies in the coming time, National Assembly deputy Hoang Van Cuong said that we should use fiscal policies to support businesses again, helping businesses relieve the burden and continue to recover and develop better, approaching the recovery trend of the world economy. Regarding the proposal to continue the policy on extending the payment deadline of land rent, VAT, corporate income tax, and personal income tax, Mr. Dau Anh Tuan, Head of the Legal Department, Vietnam Confederation of Commerce and Industry (VCCI) said that this is a policy that can reach businesses immediately, without going through the enforcement agency and a time delay, so this policy has great effect.

Affirming that fiscal policies have promoted people’s strength and supported businesses, Minister of Finance Ho Duc Phoc said, along with fiscal policies through tax exemptions, reductions, and extensions of payment deadline of taxes and land rents, the Ministry of Finance will continue to innovate, apply digital transformation, reform administrative procedures, build synchronous legal policies on finance to accompany businesses to overcome difficulties and continue to develop, making a greater contribution to the country’s development.

The Minister affirmed that tax support to nurture revenue sources is very necessary, but focusing on perfecting legal policies, freeing resources, removing difficulties in capital, market, and legal matters… for businesses to develop is also extremely important and is a solid foundation for sustainable development.


Leave a Reply