After a period of decline, from the end of the second quarter of 2023 until now, purchasing power has increased again, bringing expectations for a prosperous year-end shopping period and Lunar New Year 2024.
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| Policymakers have made proposals to stimulate consumption, contributing to economic growth. (Source: VNA) |
In a difficult economic context, people are tightening their spending, the National Assembly has just agreed to reduce value added tax by 2% from January 1 to June 1, 30. This decision is expected to stimulate consumption, one of three important pillars contributing to economic growth.
Recently, the business community has encountered many difficulties, especially market issues, capital, legal issues, administrative procedures... The Government has issued many policies to support businesses but the impact has not been much. People tend to reduce spending.
Therefore, solutions to stimulate demand and reduce value-added tax (VAT) in the coming time will reduce the tax burden between businesses and consumers.
Recently, the National Assembly agreed to reduce value added tax (VAT) by 2% from January 1 to June 1, 30. The 6% reduction in VAT rate will be applied to groups of goods and services currently applying the 2024% VAT rate (to 2%), except for the following groups of goods and services: Telecommunications , information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coal coke, refined petroleum, chemical products, goods and services subject to special consumption tax.
Thus, the VAT reduction still only applies to some industries and fields, and is not really satisfactory according to many previous experts' suggestions.
Minister of Finance Ho Duc Phoc explained: Not expanding the subjects eligible for VAT reduction is to ensure consistency in policy; at the same time reducing pressure on the budget.
“If VAT is reduced for all types of goods and services, budget revenue in the first 6 months of 2024 will decrease by about VND 37.100 billion. If only applied to some groups of goods and services, the budget revenue loss would be about 25.000 billion VND. For economic growth, it is necessary to remove obstacles in production, business, markets, capital sources, administration, application of science and technology, and increase labor productivity," the Minister of Finance emphasized.
After a period of decline, from the end of the second quarter of 2023 until now, purchasing power has increased again, bringing expectations for a prosperous year-end shopping period and Lunar New Year 2024.
According to Chairman of the Vietnam Retailers Association Nguyen Anh Duc, the above recovery process is the result of stimulus policies such as: 2% reduction in VAT, extension of tax payment time, reduction of land use fees, etc. reducing loan interest rates and the "open door" policy for tourist visas... These policies have had a positive impact on the retail sector, helping the overall revenue of the entire market in general and retail businesses in particular grow. positive.
For modern retail systems, Mr. Dinh Quang Khoi, Director of Marketing MM Mega Market, said: The continued reduction of VAT in 2024 is a very positive sign to stimulate consumer demand. In the third quarter of 2023, the number of shoppers at the business's retail system has improved, revenue increased by nearly 20% over the same period last year, including a significant contribution from a 2% VAT reduction. .
“In 2024, reducing VAT by 2%, along with reducing environmental protection tax on gasoline and oil will help businesses stabilize development and better economic growth. However, the Government needs to specifically consider supporting businesses from both a fiscal and monetary policy perspective. I think that stabilizing the macroeconomy and exchange rate is very important, helping import-export and domestic production and business to stabilize supply and demand, as well as boost economic growth. the whole year 2024", economic expert, Associate Professor, Dr. Dinh Trong Thinh proposed.
According to Dr. Nguyen Quoc Viet, Deputy Director of the Institute of Economic and Policy Research (VEPR), the VAT reduction policy not only supports businesses in maintaining production and business activities, but also helps workers get jobs. jobs, avoiding unemployment, while cultivating a more sustainable, long-term revenue source in the future.
“This ensures businesses survive, people feel secure in investing when the cash-goods cycle is maintained. If we now let inventory, prices increase, and inflation pressure escalate, it will not be possible to stimulate consumer demand, leading to many production, service, and business sectors facing difficulties", Dr. Nguyen Quoc Viet expressed.
