The Ministry of Finance is seeking feedback on a draft circular regulating the collection rates of certain fees and charges. The agency proposes a further reduction of 10-50% for 36 fees and charges to alleviate difficulties and support production and business activities. The reduction will be in effect from July 1st to December 31st of this year. The expected reduction rate is 10-50%.
Specifically, the fees for issuing licenses for the establishment and operation of banks, and the fees for appraising construction investment projects, will be collected at 50% of the stipulated rates.
Fees for accessing and using environmental data are collected at 70% of the regulated amount. Fees for accessing and using water resources, implemented by central agencies, are collected at 80% of the regulated amount. Fees for concessions to operate airports and airfields are collected at 90% of the regulated amount.
The fees for issuing passports, travel documents, exit permits, and AB stamps are 80% of the regulated rates.
The fee for issuing citizen identification cards is also expected to be reduced by 50% compared to the current regulations. Fees in the healthcare sector will be collected at 70% of the regulated rate.
The Ministry of Finance has proposed reducing passport issuance fees and 35 other fees and charges.
In the securities sector, many fees and charges have been reduced to support the establishment of securities companies, securities investment funds, and securities advisory organizations.
The reduction in fees and charges in the securities sector excludes two items: fees for issuing new, renewing, or reissuing certificates of securities practice for individuals practicing securities at securities companies, securities investment fund management companies, and securities investment companies; and fees for supervising securities activities.
In addition, the Ministry of Finance is also studying further proposals to extend the deadlines for several taxes. The agency is proposing a draft resolution for the National Assembly on reducing the value-added tax by 2% until December 31, 2024.
The Vietnam Chamber of Commerce and Industry (VCCI) believes that, given the current economic challenges, continuing the VAT reduction policy from July until the end of 2024 is absolutely necessary.
According to VCCI, businesses have encountered numerous difficulties in implementing this policy, primarily stemming from the classification of goods subject to a 10% tax and those eligible for an 8% reduction. The difficulty in determining the 8% or 10% tax rate incurs significant social costs and increases the risks associated with production and business operations.
Many businesses have reported having to hire additional accountants to adjust invoices and accounting records to reflect the new tax rates. Numerous businesses have reported situations where, after negotiating and agreeing on quantity, quality, and price with customers, disagreements over the 8% or 10% tax rate prevent contract signing. There have even been cases where businesses undertaking construction projects have faced disputes with partners during final settlement simply because of differing opinions on tax rates.
For the reasons mentioned above, VCCI proposes that the drafting agency consider reducing the value-added tax for all goods and services from 10% to 8%.
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