Fiscal policy solutions contribute to macroeconomic stability, and further consideration is being given to reducing the VAT by 2%.

On the afternoon of November 20th, the National Assembly discussed the draft Resolution on the application of supplementary corporate income tax under the global anti-base erosion regulations and the Government's submission on reducing value-added tax.

Các giải pháp chính sách tài chính góp phần ổn định kinh tế vĩ mô, tiếp tục xem xét giảm thuế GTGT 2%

The National Assembly discussed the application of corporate income tax and the reduction of value-added tax in its afternoon session on November 20th.

Investment support policies must ensure the principle of fairness.

Speaking at the discussion session, Delegate Vu Tien Loc, from the Hanoi delegation of the National Assembly, expressed strong agreement with the issuance of a National Assembly Resolution on the application of supplementary corporate income tax in accordance with global anti-base erosion regulations.

Representative Vu Tien Loc analyzed that the issuance of this resolution is expected to have a significant impact on reducing the attractiveness of the investment and business environment in our country, especially for strategic investors in the context of fierce competition in attracting foreign investment today.

To minimize adverse impacts, delegates suggested that, in parallel with the issuance of a resolution on supplementary corporate income tax in accordance with global anti-base erosion regulations, the National Assembly should also issue a resolution on preferential policies and support measures to ensure the maintenance of an attractive investment environment. This would simultaneously meet two objectives: promoting high-quality investment flows into the Vietnamese economy , in line with the Party and State's economic development strategies, while not violating international commitments or going against the trend of integration.

"To achieve this, it must be affirmed that the issuance of new investment incentive and support policies is not a measure to compensate investors for losses incurred due to additional taxes, as this violates OECD principles."

"Investment support policies need to ensure the principle of fairness, targeting all businesses that meet the specific criteria of our policies, regardless of whether they are subject to additional taxes or not," Mr. Vu Tien Loc emphasized.

Representative Tran Anh Tuan, from the Ho Chi Minh City delegation of the National Assembly, expressed the necessity of the draft Resolution on the application of supplementary corporate income tax in accordance with global anti-base erosion regulations…

According to National Assembly representative Tran Anh Tuan, this is a rather important resolution to adjust new tax policies in the future, creating a basis for attracting investment on an equal footing. With a minimum rate of 15%, we will have a basis to negotiate tax exemptions and reductions based on this tax rate.

To finalize the contents of the draft Resolution, delegate Tuan suggested that some content needs to be adjusted, such as removing the provision that companies can choose to pay or not pay taxes annually... from the draft Resolution, because there are already regulations on tax payment conditions at the higher level, and including this provision would be redundant.

Continue considering a 2% reduction in VAT.

Presenting the summary report on the draft resolution of the National Assembly on reducing value-added tax (VAT), Minister of Finance Ho Duc Phoc emphasized that the focused and coordinated implementation of financial policy solutions in the past has had a positive impact in supporting businesses and people to stabilize production and business, contributing to macroeconomic stability, and creating favorable conditions to promote economic recovery and growth.

In 2022, the National Assembly issued Resolution No. 43/2022/QH15 dated January 11, 2022, on fiscal and monetary policies to support the socio-economic recovery and development program, which proposed a solution to reduce VAT by 2% for certain groups of goods and services subject to a 10% VAT rate from February 1, 2022, to December 31, 2022.

In 2023, facing economic difficulties, the National Assembly continued to implement the policy of reducing VAT according to Resolution No. 43/2022/QH15 from July 1, 2023 to December 31, 2023, as stipulated in Resolution No. 101/2023/QH15 dated June 24, 2023, of the National Assembly on the 5th Session of the 15th National Assembly.

The solution of reducing VAT, along with other tax, fee, and levy support measures, is creating great opportunities for businesses to reduce production costs, increase profits, and boost demand.

The Minister of Finance stated that, over the four months of implementation (July, August, September, and October 2023), the VAT reduction policy under Resolution No. 101/2023/QH15 has supported businesses and individuals with a total of approximately VND 15.6 trillion, contributing to reducing the cost of goods and services, thereby promoting production and business, creating more jobs for workers, stimulating consumer demand, and promoting business development.

To promptly respond to the evolving socio-economic situation and to appropriately consider the actual conditions, Minister of Finance Ho Duc Phoc proposed the need to decisively and effectively implement the tax, fee, and land rent support measures issued in 2023, and to research and propose some solutions for reducing taxes, fees, and charges for 2024.

For example: Continue considering a 2% reduction in VAT and a reduction in the environmental protection tax on gasoline and diesel as applied in 2023; continue reviewing and reducing export and import tax rates to support domestic production and business; and reduce the collection of some fees and charges.

Source