Many areas have reduced taxes and fees.

From July 1, 2023, dozens of sectors will have their taxes and fees reduced. Of which, 36 fees and charges will be reduced by 10-50%; registration fees (LPTB) for domestically produced cars will be reduced by 50%; value-added tax (VAT) will be reduced by 2% and many incentives will be given in import and export taxes on goods.

Many items at supermarkets enjoy a preferential value-added tax rate of 8%. Illustrative photo: N. Lien

New preferential policies on taxes, fees and charges will be applied until December 31, 2023. This will be an overall "boost" in all areas, both stimulating the consumer market and supporting businesses and people to overcome difficulties in the current period.

* Many preferential fees and charges

Regarding the regulation of reducing 10-50% for 36 fees and charges issued by the Ministry of Finance on June 30 in Circular No. 44/2023/TT-BTC, there are 21 fees and charges that are reduced by 50%, including fees for: granting licenses for establishment and operation of banks, granting licenses for establishment and operation of non-bank credit institutions, granting certificates of construction operation capacity to organizations, granting certificates of practice in construction activities to individuals, fees for appraisal of construction investment projects (fees for appraisal of feasibility study reports on construction investment or fees for appraisal of economic - technical reports on construction investment)... and fees: appraisal of granting international travel service business licenses, domestic travel service business licenses... will help businesses and people reduce costs in production and business activities.

Previously, on June 28, the regulation on reducing 50% of the registration fee for domestically produced cars was a preferential policy that many people were interested in, contributing to increasing demand for the rather gloomy car market in recent months.

Sales Director of Dong Nai Ford Auto Dealer (Highway 1, Bien Hoa City) Thuong Van Nam said that in June 2023, Ford Dong Nai launched a stimulus program to anticipate the LPTB reduction policy. With this policy, Ford Dong Nai's revenue increased by 20% in June; the two Ford Territory and Ford Ranger models alone increased by 30% compared to previous months.

* Tax support for businesses

Along with preferential fees and charges, a number of tax reduction and tax extension policies have been issued to support businesses facing difficulties, such as: policies to extend the deadline for paying VAT, corporate income tax, land rent payment, preferential import-export tax schedules... (effective from July 15). In particular, the 2% reduction policy for VAT, officially effective from July 1, 2023, has attracted the attention of many businesses and people.

In 2022, Dong Nai Tax Department has implemented tax, fee and charge exemptions and reductions; extended tax payment deadlines in 2022 for tens of thousands of subjects with a total extension and late payment amount of nearly 6.3 trillion VND.

Director of Huong Lan Company Limited (Bien Hoa City) Huynh Thi Lan Huong said that the company is a small-scale food company and every year the company pays all taxes and fees. Therefore, whenever there is information about tax and fee reduction, Ms. Huong and many other businesses are very happy; especially in difficult times like now, the extension and reduction of tax and land rent are incentives that help businesses stabilize production and overcome difficulties.

In 2022, the Government issued a policy of reducing VAT by 2% in the last 6 months of the year, helping many businesses recover production and business. At the same time, people reduced costs in purchasing goods for daily life.

In 2023, from July 1, VAT will once again be reduced to accompany businesses. Accordingly, VAT will be reduced from 10% to 8%. However, the tax reduction will not apply to groups of goods such as: telecommunications, information technology, finance, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products, refined petroleum, chemical products and items subject to special consumption tax.

Although preferential policies are always communicated to taxpayers quickly and promptly, there are still some problems during implementation.

Head of the Taxpayer Support and Propaganda Department (Dong Nai Tax Department) Tran Quang Ninh said: "Some enterprises when applying preferential policies are still confused about some contents such as: how to determine the industry code, the time to enjoy VAT incentives, enterprises write incorrect information on invoices... Regarding the above problems, the Tax Department will guide taxpayers to start over to enjoy the incentives".

Ngoc Lien

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