Continued tax and fee cuts to promote economic growth

The MoF has issued a circular regulating the reduction of 35 fees and charges in the fields of securities, healthcare, citizen identification, and appraisal of construction investment projects.

In the spirit of accompanying businesses and people to overcome difficulties to recover and develop the economy, this year the Ministry of Finance (MoF) has continued to submit to competent authorities and promulgate according to its authority policies on exemption, reduction and extension of taxes, fees and charges.

In accordance to its authority, the MoF has issued a circular regulating the reduction of 35 fees and charges in the fields of securities, healthcare, citizen identification and appraisal of construction investment projects.

The application period is from July 1 to December 31 this year with the amount in question expected to reduce State budget revenue by about VNĐ700 billion (US$29.2 million).

Recently, in order to promptly remove difficulties and obstacles, promote resources, improve the economy's ability to access and absorb credit capital, promote growth associated with maintaining macroeconomic stability, striving to achieve the highest goals and targets of the socio-economic development plan and State budget as set out this year, Prime Minister Phạm Minh Chính has issued Official Telegram 990/CĐ -TTg dated October 21 on continuing to drastically implement solutions to increase access to credit capital, remove difficulties for production and business activities, and perform state budget collection tasks this year.

Accordingly, the Prime Minister requested the MoF to proactively propose solutions for exemption, reduction and extension of taxes, fees and charges next year, and submit them to competent authorities for timely consideration and decision.

In addition, drastic solutions are needed to help State budget revenue this year exceed the estimate assigned by the National Assembly.

The MoF has proposed financial policy solutions to promote aggregate domestic consumption demand.

Specifically, the MoF has researched and proposed a number of solutions to reduce taxes, fees and charges for next year, such as continuing the 2 per cent reduction in value added tax and considering reducing the environmental protection tax rate for gasoline and oil as applied this year.

At the same time, it will continue to review and reduce export and import tax rates to support domestic production and business; and reduce the collection of some fees and charges.

Regarding budget revenue this year, the ministry said that budget revenue had reached 85 per cent by October 30, equivalent to VNĐ1.36 quadrillion.

In the last months of the year, the MoF will continue to implement solutions, from electronic invoice issues to building tax data centres and cross-border electronic information portals.