The National Assembly Standing Committee has agreed to submit to the National Assembly for consideration and decision on reducing value added tax according to the Government’s Proposal.

On the morning of June 13, the National Assembly Standing Committee discussed the draft Resolution of the National Assembly on reducing value added tax (VAT).

According to the Government’s Proposal, the Government has submitted to the National Assembly for consideration and permission to continue implementing the policy of reducing the VAT rate by 2% for a number of groups of goods and services that are currently applying the 10% VAT rate. in the last 6 months of 2024 (from July 1, 2024 to December 31, 2024) and assigned to the Government to organize and implement.
Scene of the meeting
Accordingly, a 2% reduction in value-added tax rate applies to groups of goods and services currently subject to a tax rate of 10% (to 8%), except for the following groups of goods and services:

telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding mining) coal mining), production of coke, refined petroleum, production of chemicals and chemical products, goods and services subject to special consumption tax.

The goal is to stimulate consumption demand, in accordance with the current economic context, thereby promoting production and business activities to soon recover and develop to contribute back to the state budget as well as the economy.

economy to implement the 5-year socio-economic development plan 2021 – 2025, the annual socio-economic development plan, and the economic restructuring plan for the period 2021 – 2025.

According to the Government, if we continue to implement the VAT reduction policy for the last 6 months of the year, it is expected that the whole year of 2024 will reduce revenue by about 47.488 trillion VND.

Reducing VAT has the effect of reducing state budget revenue, but it also has the effect of stimulating production and promoting production and business activities, thereby also contributing to creating more revenue for the state budget.

Estimated state budget revenue in 2024 is 1,701 trillion VND. Updated until the end of May, according to the State Treasury’s report, the amount of state budget revenue realized by May 31, 2024 is 909.3 trillion VND, equal to 53.5% of the estimate and an increase of 15% over the same period. period 2023.

State budget revenues were quite good compared to estimates and grew over the same period, reflecting the impact of a positive economic recovery, direct revenues from production and business activities (3 economic sectors) reached 54.7 % estimate, up 14.3% over the same period; Land use fee collection continued to improve. Although progress reached 33% of the estimate, it still increased by 92.8% over the same period.

To overcome and offset impacts on state budget revenue in the short term as well as ensure proactiveness in managing state budget estimates, the Government will direct the Ministry of Finance to coordinate with relevant ministries, branches and localities.

focus on directing and effectively implementing tax laws; continue to reform and modernize the tax system, simplify tax administrative procedures; Drastically manage state budget revenues, focusing on timely and effective implementation of revenue management solution groups, preventing revenue loss, transfer pricing, and tax evasion;

At the same time, strictly manage state budget expenditures, increase spending savings (both investment and regular expenditures), review and cut spending tasks that are not really necessary and are slow to deploy after June 30, 2024. ;

Proactively use provisions, reserves and other legal resources to spend on prevention and control of natural disasters, epidemics and other urgent tasks arising according to regulations, ensuring budget balance at all levels, keeping the surplus level. spending within the estimate decided by the National Assembly.

According to the preliminary examination report of the Finance and Budget Committee, the majority of opinions in the Standing Committee of the Finance and Budget Committee agreed with the proposal to continue to allow the application of the policy of reducing the VAT rate by 2% with the form and scope.

en as shown in Resolution No. 110/2023/QH15 of the National Assembly. Besides, there are also opinions that disagree and request the Government to more carefully evaluate the ability to achieve the goal of stimulating consumption when promulgating and implementing this policy.

Incorporated into the meeting resolution for the National Assembly to consider and decide

Speaking at the meeting, members of the National Assembly Standing Committee all expressed agreement to reduce VAT by 2% until the end of 2024 and include this content in the General Resolution of the 7th session. This is also the third time 3 The National Assembly decided to reduce VAT by 2%.

Vice Chairwoman of the National Assembly Nguyen Thi Thanh spoke.
Vice Chairwoman of the National Assembly Nguyen Thi Thanh said that the economy still has much room to recover. Therefore, tax reduction will help taxpayers have motivation to produce and increase revenue for the coming years.

At the same time, it helps the economy maintain production and increase consumer demand. The Government’s proposed time is only 6 months, not a long-term reduction.

National Assembly Chairman Tran Thanh Man said that the Politburo has agreed on the policy of reducing value added tax. The Chairman of the National Assembly requested the Government to complete the proposal, the Finance and Budget Committee had an inspection report, the General Secretary of the National Assembly issued an official dispatch on the discussion in this content group, then synthesized the opinions of the National Assembly. National Assembly delegates when explaining the General Resolution of the session.
National Assembly Chairman Tran Thanh Man spoke.
Speaking concluding this content, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized that the National Assembly Standing Committee agreed to submit to the National Assembly for consideration and decision on reducing value added tax according to the Government’s proposal and request.

The Government absorbed the opinions of the National Assembly Standing Committee and the opinions of the inspection agency to complete the draft Resolution, increasing the persuasiveness of value added tax reduction.

The National Assembly Standing Committee also requested the Government to learn from the experience of submitting contents under the authority of the National Assembly during the session that are not in accordance with regulations, to avoid having to adjust the session agenda and that the National Assembly agencies have many problems.

little time to research and verify. Learn from experience in forecasting policy situations.

It is recommended that the Government organize the implementation of the policy to ensure goals and time, avoiding difficulties and obstacles during the implementation process.

Responsible for operating and implementing revenue tasks, without affecting the 2024 state budget expenditure estimates. Continue to edit and supplement tax laws, fully institutionalize the Party and State’s policies in That includes value added tax.

“In particular, pay attention to the viewpoint of amending and supplementing tax laws based on market principles and international practices, improving the efficiency of tax management, applying reasonable tax rates, orienting and increase taxes according to the roadmap” – Vice Chairman of the National Assembly stated.

The National Assembly Standing Committee requested the Government to urgently complete the draft resolution documents to submit to the National Assembly and inspection agencies.

Request the Finance and Budget Committee to officially verify, clearly state the views, submit to the National Assembly for consideration and discussion in the group within an appropriate time arranged by the Office of the National Assembly to consider and decide and make a decision. a content in the Resolution of the 7th session.