 |
Government proposes continued reduction of value added tax in the first 6 months of 2024. |
The Government issued Resolution 164 at the regular governmental meeting in September 2023 and online conference between the Government and localities.
Under the Resolution, the Government required local administration to focus on reviewing their key socioeconomic development plan targets for 2023 and the results of 9-month implementation. The government urged localities to synchronously and drastically implement solutions for the completion of the set goals and targets for 2023.
In the Resolution, the Government also requested the Ministry of Finance to coordinate with agencies and localities to carry out solutions so that state budget revenue in 2023 meets the National estimate. Moreover, the Ministry must expand the tax collection with a close eye on e-commerce and digital platforms for the prevention of tax loss, especially for food services and night economy activities.
In addition to its proposal for the reduction of value-added tax in the first 6 months of 2024, the government suggested the NA assign the National Assembly Standing Committee to consider and decide between two National Assembly sessions if the economic situation and businesses are still facing difficulties. The committee should report to the National Assembly about this proposal at the latest session.
Effective implementation of policies on exemption, reduction, and extension of taxes, fees, and land rent should be promulgated. Related agencies should promptly propose and report extension of policies that are ineffective at the end of 2023 to continue removing difficulties for business and people's lives.
The Government also requested the Ministry of Finance to report to the National Assembly Standing Committee for consideration of the application for environmental protection taxes on petroleum products in 2024. The Ministry’s reports must be drawn up for submission to the Government in October 2023.
Based on proposals from ministries, agencies and localities on fee and charge policies to encourage people and businesses to use online public services, the Ministry of Finance should study and report to the Prime Minister in October 2023.
The State Bank of Vietnam was asked to coordinate with agencies and localities to closely follow market developments to continue to operate monetary policy effectively and synchronously with fiscal policy and other policies in order not to create strong fluctuations or sudden changes that affect market psychology, businesses, investors, and people. The bank was also required to manage exchange rates in accordance with the situation to contribute to controlling inflation and stabilizing the macro-economy, and foreign exchange markets.
Last but not least, the state bank should continue to instruct credit institutions to simplify lending procedures to increase credit access for businesses and promote the disbursement of the VND40 trillion (US$1.64 billion) credit package providing low-interest loans, the VND20 trillion credit package for social housing loans and VND15 trillion for forestry and fisheries sectors.
The Ministry of Industry and Trade must be determined to implement solutions to ensure electricity supply in the last months of 2023 and in 2024 and petroleum supply assigned by the Prime Minister.
The Ministry of Industry and Trade must soon submit to competent authorities for the promulgation of mechanisms to encourage the development of self-produced rooftop solar power and direct electricity trading mechanisms.
