Agricultural, forestry and fishery enterprises propose to amend VAT mechanism

VTV.vn - Agricultural, forestry and fishery enterprises have proposed amending the VAT mechanism to reduce the financial burden of tax collection in advance and refund later, helping to increase the competitiveness of Vietnamese agricultural products.

Illustration photo.

During the implementation process, some provisions of the Law on Value Added Tax 2024 have revealed inadequacies, causing obstacles for businesses, especially in the fields of agriculture, forestry and fisheries. Recently, 5 business associations in the agriculture, forestry and fisheries sectors have sent petitions to some leaders of the National Assembly , hoping to have them resolved.

According to the business association group, the major bottleneck comes from the 5% tax rate applied to products "not yet processed into other products or only through normal preliminary processing".

In addition, the pre-collection and post-refund tax mechanism puts financial pressure on businesses, in the context of very low profit margins for agricultural products, especially raw and pre-processed agricultural products, at only about 1-3%.

The coffee industry alone is estimated to have to pay nearly 10,000 billion VND in value added tax each year. Or the pepper industry has to pay 85 million USD each year.

The above figures reduce the competitiveness of Vietnamese agricultural products against competitors from India, Indonesia or Brazil - where raw agricultural products are exempt from value added tax.

Source: https://vtv.vn/doanh-nghiep-nong-lam-thuy-san-de-xuat-sua-co-che-thue-vat-100251128154808656.htm