Proposal to further reduce value added tax after December 31, 2023 if the situation remains difficult

SGGPO 05/28/2023 20:28

On the afternoon of May 28, the Government Electronic Information Portal held an online discussion with the topic "Stabilizing the macro economy and developing the corporate bond market".

Managers and experts attending the seminar

Commenting on solutions for the coming time, Prof. Dr. Hoang Van Cuong, National Assembly delegate, Vice President of the National Economics University, said that we have quite a good room to implement fiscal policy. Recently, the Government has continued to implement supportive fiscal policies, such as immediately deciding to defer contributions and taxes, and proposing that the National Assembly further reduce value-added tax (VAT) by 2%. However, according to Mr. Cuong, the Government should report to the National Assembly by December 31, 2023. If the situation is still difficult, it is recommended that the National Assembly allow the VAT reduction period to be extended so that when the National Assembly Standing Committee approves it, it can be implemented immediately, without having to wait until the next session for consideration.

Proposal to further reduce value added tax after December 31, 2023 if the situation remains difficult photo 1

Professor, Dr. Hoang Van Cuong, National Assembly delegate, Vice President of National Economics University

Opinions at the seminar also said that the most important issue at present is to remove institutional bottlenecks to free up resources. In particular, it is necessary to promote the responsibility of leaders to remove current difficulties and bottlenecks, including the issue of corporate bonds and capital disbursement for the economic recovery program.

Notably, according to Professor Hoang Van Cuong, businesses without capital cannot produce and do business. We cannot wait for the world economy to recover before investing in production and business. Therefore, we must prepare resources for businesses right now, and capital for businesses comes from two main sources: corporate bonds and bank loans.

“When inflation is controlled at an acceptable level, it is necessary to consider gradually loosening monetary policy, creating conditions to support capital sources for businesses, gradually shifting to focusing on growth. If last year the issue was maintaining macroeconomic stability, now we must set a growth target,” said Professor, Dr. Hoang Van Cuong.

Of course, we must control the cash flow well, because if we let the cash flow not flow to the right place where it is needed to produce and do business to create wealth to bring to the market, liquidity immediately, but fall into frozen areas, lacking money, and having outstanding debts, it is almost like throwing money into a black hole, throwing salt into the sea, wasting financial resources.

Dr. Vu Minh Khuong, lecturer at the Lee Kuan Yew School of Public Policy (Singapore), assessed that Vietnam has only stopped at improving the business environment, without any fundamental breakthroughs, while entering a new growth phase, requiring new breakthroughs in thinking as well as awareness of building a modern nation in the next 2-3 decades. According to him, we must quickly overcome the phase of reducing hassles, and from reducing hassles, we must turn into an elite army to support businesses to move forward. The Singapore Chamber of Commerce and Industry is very strong, focusing on good human resources to promptly support businesses and investors, Vietnam needs to do the same. The Ministry of Planning and Investment and the Ministry of Finance must send elite troops to each locality so that they know what bottlenecks they can help remove.

"It is not a matter of sitting around waiting for the eagles to come, but of proactively welcoming them with open solutions," said Dr. Vu Minh Khuong. He also believes that we must abandon the mindset of cheap labor to attract investment, and instead use high-quality labor.

According to Deputy Minister of Finance Nguyen Duc Chi, to promote support for the economy, we must solve it with expansionary fiscal policy. That is, deferring taxes, reducing taxes, reducing land rents, and needing many support policies for businesses and people. Increasing disbursement of public investment, investment in infrastructure, highway systems and other infrastructures...

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