Ministry proposes continued tax and fee cuts to promote economic growth

This reflects the ministry's dedication to supporting businesses and individuals, aiding them in overcoming challenges and fostering economic recovery and development.

In line with its authority, MoF has released a circular that governs the reduction of 35 fees and charges across sectors such as securities, healthcare, citizen identification, and the assessment of construction investment projects.

The application period is from July 1 to December 31 this year with the amount in question expected to reduce State budget revenue by about VNĐ700 billion (US$29.2 million).

Officials of HCM City Tax Department guide the public on tax procedures. — Photo nld.com.vn

Recently, in order to promptly remove difficulties and obstacles, promote resources, improve the economy's ability to access and absorb credit capital, and promote growth associated with maintaining macroeconomic stability, striving to achieve the highest goals and targets of the socio-economic development plan and State budget as set out this year, Prime Minister Phạm Minh Chính has issued Official Telegram 990/CĐ -TTg dated October 21 on continuing to drastically implement solutions to increase access to credit capital, remove difficulties for production and business activities, and perform state budget collection tasks this year.

Accordingly, the Prime Minister requested the MoF to proactively propose solutions for the exemption, reduction and extension of taxes, fees and charges next year, and submit them to competent authorities for timely consideration and decision.

In addition, drastic solutions are needed to help State budget revenue this year exceed the estimate assigned by the National Assembly.

The MoF has proposed financial policy solutions to promote aggregate domestic consumption demand.

Specifically, the MoF has researched and proposed a number of solutions for next year to reduce taxes, fees and charges, such as continuing the 2 per cent reduction in value added tax and considering reducing the environmental protection tax rate for gasoline and oil as applied this year.

At the same time, it will continue to review and reduce export and import tax rates to support domestic production and business; and reduce the collection of some fees and charges.

Regarding budget revenue this year, the ministry said that budget revenue had reached 85 per cent by October 30, equivalent to VNĐ1.36 quadrillion.

In the last months of the year, the MoF will continue to implement solutions, from electronic invoice issues to building tax data centres and cross-border electronic information portals.