Extending the period of value added tax reduction: Motivation for production and business development and stimulating consumption

(GLO)- The National Assembly has just passed a Resolution on value-added tax reduction, which includes many new points such as expanding the scope of application and extending the application period until December 31, 2026. This is a driving force to develop production and business and stimulate consumption.

The policy of reducing value-added tax contributes to stimulating consumption, bringing practical benefits to people and businesses. Photo: SC

On June 17, the National Assembly passed a Resolution on reducing value added tax. The Resolution has many new points such as expanding the scope of application of the 2% reduced value added tax rate (from 10% to 8%) for areas such as: transportation, logistics, information technology services...

This Resolution applies to groups of goods and services specified in Clause 3, Article 9 of the Law on Value Added Tax No. 48/2024/QH15, except for some groups of goods and services such as: telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (except coal), goods and services subject to special consumption tax (except gasoline).

The tax reduction policy is extended until the end of 2026, helping businesses be more proactive in production and business.

Value added tax is an important tax, covering most industries, economic sectors and life. For taxpayers who are enterprises, implementing tax reduction policies means reducing input costs in production and business activities. This is also an effective lever to stimulate consumption.

Mr. Tran Van Thinh - General Director of Toyota Gia Lai - said: "The policy of reducing 2% value added tax brings benefits to consumers and businesses. Through the reduction of taxes, fees, and registration fees, the market has been stimulated, creating a strong motivation for consumption, contributing to increasing sales and service provision of businesses.

Once purchasing power increases, goods and services are consumed well, people and businesses regenerate resources to continue contributing to the state budget.

Sharing the same view, Mr. Tang Van Tuan (45 Le Thanh Ton, Pleiku City) said: “In the context of the accelerating socio-economic development, the policies of tax reduction and tax payment extension implemented promptly in recent years have practical significance. For each item of goods and services with reduced tax, people will reduce costs, feel more comfortable and have more motivation.”

According to information from the Tax Department of Region XIV, domestic revenue in the first 6 months of the year in the province is estimated at 3,435 billion VND, equal to 101.8% compared to the same period in 2024. Of which, domestic revenue excluding land use fees and lottery revenue reached 2,832 billion VND, equal to 102.6% compared to the same period last year.

In parallel with the budget collection work, the Tax Department of Region XIV has proactively guided taxpayers to promptly carry out procedures to receive tax exemption, tax reduction, and tax payment extension according to resolutions of the National Assembly and decrees of the Government.

Currently, in the province, 15/18 revenue items and taxes exceed the assigned estimate. The remaining 3/18 revenue items and taxes that do not meet the assigned estimate are land use fees, environmental protection taxes, and land rents. The reason these revenue items are not on schedule is partly due to the impact of the implementation of tax reduction policies and tax payment deadline extensions.

Reducing Value Added Tax creates incentives to stimulate consumption, increase the circulation of goods and services in economic sectors and fields. Photo: SC

Regarding the implementation of policies to support taxpayers, Mr. Tran Quang Thanh - Deputy Head of the Tax Department of Region XIV - said: "In recent times, the timely and complete implementation of policies on tax exemption, tax reduction, and tax payment deadline extension has brought benefits to taxpayers. These policies have contributed to removing difficulties, stimulating growth, creating resources and motivation for taxpayers to develop production and business, and continue to contribute to the state budget".

According to Mr. Thanh, in the coming time, the Department will continue to closely follow the direction of the Central Government and the province, focus on synchronously implementing tax management solutions, promoting digital transformation, and promptly exploiting remaining revenue sources. In addition, it will continue to implement policies to support taxpayers, including the policy of reducing 2% of value-added tax rates according to the resolution of the National Assembly just issued.

Source: https://baogialai.com.vn/keo-dai-thoi-gian-giam-thue-gia-tri-gia-tang-dong-luc-phat-trien-san-xuat-kinh-doanh-va-kich-cau-tieu-dung-post329604.html