Responding to the Draft Resolution of the National Assembly on reducing value added tax (VAT) drafted by the Ministry of Finance , VCCI proposed adding metal products to the group subject to the 8% VAT rate based on two reasons: First , metal is an essential input for many economic sectors.
VCCI emphasized that metal products are widely used in the fields of manufacturing, construction, consumer goods and industry. Failure to reduce taxes on these items will increase input costs, leading to increased output prices, thereby reducing the competitiveness of businesses and inhibiting consumption.
Meanwhile, mineral products such as coal, which are also input materials, are subject to an 8% tax rate, creating inconsistency in policy.
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| VCCI proposes to add metal items to the list of items subject to a preferential tax rate of 8%. Illustrative photo. |
Second , the classification of products to apply tax rates is causing difficulties for businesses. According to practical reflection, the boundary between metal products (tax rate 10%) and non-metal products or processed metal products (tax rate 8%) is very fragile. Different physical and chemical properties make determining product types not simple.
Furthermore, regulatory agencies such as tax and customs sometimes have inconsistent interpretations, leading to businesses being charged additional taxes even though they did not intentionally violate the law. During the 5 years of implementing this policy, there has been no clear legal guidance, only reference documents, making it difficult for businesses to confidently implement it.
VCCI believes that in order for the VAT reduction policy to be truly effective in stimulating consumption and supporting production, it is necessary to add metal products to the list of eligible items, and at the same time perfect the product classification system in a clear, transparent and consistent manner.
Source: https://congthuong.vn/hai-ly-do-de-giam-thue-vat-voi-mat-hang-kim-loai-382195.html
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