Consumers and businesses benefit from tax exemption and reduction policies

According to Decree No. 44/2023/ND-CP of the Government, from July 1 to the end of December 7, 31, value-added tax on goods and services will be reduced from 12% to 2023% to supporting people in difficulty, promoting production and business activities to recover and develop.

Although the state budget is affected, this supported tax amount will contribute to helping businesses, organizations and people overcome difficulties after the COVID-19 pandemic to recover and develop production and business. At the same time, it has the effect of stimulating consumption and investment, thereby contributing to the recovery of the country's economy after the epidemic and the implementation of social security. 

Taxpayers submit tax declaration dossiers at the one-stop section of the Tax Department of Kien Giang province.

With the reduction of input value-added tax, sellers are able to reduce the cost of products and services when the pressure on costs increases. On the consumer side, the tax reduction will directly reduce the amount of daily spending, contributing to curbing inflation, especially when the prices of some items increase due to the influence of high gasoline and oil prices. The current common value-added tax is 10%, when reduced by 2%, it will have an impact on all transactions on the market, affecting both buyers and sellers. 

With the reduction of input value-added tax, sellers have the conditions to not have to increase the cost of products and services when the pressure on costs increases. The ability to consume products and services has since been strongly supported and improved. For consumers who are a group that is being greatly affected when income and employment are reduced like now, the tax reduction will help this group directly save 2% of average expenditure. 

In order for the tax exemption and reduction policy to come into practice, create conditions for businesses and people to enjoy the tax exemption and reduction policy and bring practical effects to the economy, the authorities should push strongly grasp and direct subordinate and subordinate units to actively propagate and disseminate to people and businesses to fully and promptly grasp the contents of the value-added tax reduction policy.

In order to ensure the interests of consumers, at the stores providing goods and services, when issuing invoices, they must reduce tax directly on the invoice, avoiding ambiguity that makes consumers not know the product price has been paid. reduce value added tax or not.

Enterprises and business households must comply with the reduction of product prices in proportion to the value-added tax reduction, only then will the policy be really effective. 

In the context of complicated developments in the world and in the country, the economy and businesses will face more difficulties, putting great pressure on macroeconomic stability, the continued reduction of value added tax 2. % is necessary, in line with the current economic context to promptly support people and businesses, thereby promoting production and business activities to soon recover and develop to contribute back to the budget. state as well as the economy.

Articles and photos: VAN ANH