National Assembly 'finalizes' continued reduction of 2% VAT until the end of 2024

Secretary General, Head of the Office of the National Assembly Bui Van Cuong - Photo: GIA HAN

The above content is stated in the resolution of the 7th session of the 15th National Assembly, which was recently passed by the National Assembly with the approval of the vast majority of delegates.

According to the resolution, at this session, the National Assembly passed 11 laws and 21 resolutions. The National Assembly also gave its first opinions on 11 laws and investment policies for the national target program on cultural development for the 2025-2035 period...

Notably, the National Assembly agreed to continue reducing 2% VAT on groups of goods and services specified in Resolution 43 of 2022 of the National Assembly on fiscal and monetary policies to support the socio -economic recovery and development program from July 1, 2024 to December 31, 2024.

The National Assembly assigned the Government to organize the implementation of policies to ensure the achievement of the set goals. Responsible for managing and implementing revenue collection tasks, not affecting the revenue estimates and state budget deficit in 2024 according to the National Assembly's resolution.

Ensure revenue for budgeted expenditures and emerging urgent needs.

With this decision, groups of goods and services currently subject to a 10% tax rate will have their VAT reduced by 2% (to 8%).

Except for some groups of goods and services that are not subject to reduction, such as: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining (except coal mining), coke production, refined petroleum, production of chemicals and chemical products, goods and services subject to special consumption tax.

Also according to the resolution, the National Assembly allows the State Bank of Vietnam to automatically extend the repayment deadline three times for the remaining refinancing balance of credit institutions that are lending to Vietnam Airlines Corporation - JSC (Vietnam Airlines) to supplement capital for production and business activities according to the provisions of Resolution 135 of 2020 of the National Assembly.

The extension period for each time is equal to the first recapitalization period, the total maximum extension period for recapitalization shall not exceed 5 years (including 2 extensions under Resolution 135).

The Government is assigned to direct the State Capital Management Committee at Enterprises, relevant agencies and Vietnam Airlines to develop a comprehensive development strategy; urgently complete a comprehensive project of solutions to remove difficulties for Vietnam Airlines to recover soon and develop sustainably.

Accelerate the comprehensive restructuring of Vietnam Airlines in accordance with the spirit of Resolution 12 of 2017 of the Central Committee on continuing to restructure, innovate and improve the efficiency of state-owned enterprises.

Clearly identify objective and subjective causes, especially causes due to difficulties in legal documents during the process of developing the overall project, and propose timely solutions.

Clearly define the responsibilities of agencies and organizations in implementing commitments to the National Assembly on the effectiveness of implementing solutions on refinancing loans.

The National Assembly allows the use of 18,220 billion VND of the central budget reserve.

At the session resolution, the National Assembly allowed the use of VND 18,220 billion in the central budget reserve of the medium-term public investment plan for the 2021-2025 period, corresponding to the increased central budget revenue in 2023.

Allowing completion of investment procedures for projects from the central budget reserve fund of the medium-term public investment plan for the period 2021 - 2025, corresponding to the increased central budget revenue in 2023.

For 4 projects: Gia Binh airport, construction of new headquarters of the Supreme People's Court (262 Doi Can), investment in repair, renovation, upgrading and construction of headquarters of People's Courts at all levels (phase 1) and Tuyen Quang - Ha Giang expressway phase 1 through Tuyen Quang province, the National Assembly allows competent authorities to decide on investment policies for the project based on capital sources and expected capital levels allocated for the project from the capital source of increased central budget revenue in 2023, capital sources for the period 2026-2030 and other legal capital sources (if any) to complete investment procedures according to regulations.

Source: https://tuoitre.vn/quoc-hoi-chot-tiep-tuc-giam-2-thue-vat-den-het-nam-2024-2024062910383052.htm