Delegate: If we could do it again, it would be better if the VAT package was reduced by 8% across the board.

(Dan Tri) - National Assembly delegates highly appreciated the policy of reducing 2% VAT according to Resolution No. 43 of the National Assembly.

The 2% VAT reduction policy has a dual effect. On the morning of May 25, the National Assembly discussed the implementation of Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Socio -Economic Recovery and Development Program and the National Assembly's resolutions on a number of important national projects until the end of 2023. Evaluating the results of the implementation of the tax exemption and reduction policy, the report of the National Assembly's Supervisory Delegation showed that the policy of reducing the value added tax (VAT) rate by 2% for groups of goods and services currently applying a tax rate of 10% (except for some groups of goods and services that have been specifically regulated) has achieved positive results. Specifically, the expected VAT reduction when developing the program is 49,400 billion VND. The actual implementation amounted to VND 44,458 billion, of which the reduction in the State budget revenue in 2022 was VND 41,498 billion, and the reduction in the State budget revenue in January 2023 was VND 2,960 billion, equal to 90% of the expected amount. The application of policies to support businesses and people is applied to organizations and individuals, regardless of the size of the business. The policy has a dual effect, helping to reduce the cost of goods and services, thereby increasing purchasing power, promoting production and business and creating more jobs for workers, recovering and developing the socio-economy. At the same time, the application of this policy also contributes to controlling inflation, stabilizing the macro-economy and ensuring social security in the context of inflation, prices and high input costs for production. However, the report of the Supervisory Delegation pointed out many shortcomings in the implementation of tax exemption and reduction. Specifically, regarding the identification of some goods and services that are not subject to VAT reduction and some goods and services that are subject to VAT reduction and the lookup of business codes and HS codes when importing goods and raw materials; some businesses do not clearly understand the business items in the list of goods and services that are not subject to VAT reduction. Business establishments that calculate VAT according to the % method on revenue are reduced by 20% of the % rate to calculate VAT when issuing invoices for goods and services that are subject to VAT reduction. The amount of VAT reduction in this case is low, some businesses and buyers of goods and services do not want to comply with the regulations. There is a large number of households and individuals doing small and retail business that do not issue or do not have the conditions to issue sales invoices, so they cannot manage the selling price of goods. There is still a state of confusion in the application stage, arising problems in the implementation process, requiring tax authorities to guide and explain; Policy dissemination and propaganda work still faces difficulties, especially for small and medium enterprises and individual business households. Contradictions on the subjects of 2% VAT reduction Regarding the policy of 2% VAT reduction, delegate Nguyen Quang Huan ( Binh Duong delegation) stated that it is correct to include some industries in the reduction list, but "some industries do not necessarily need to be reduced".

Delegate Ha Sy Dong spoke during the discussion session on the morning of May 25 (Photo: National Assembly).

Mr. Huan said that the tax reduction is a reduction in sales tax for businesses, which are now gradually returning to normal. He said: "Of course, the private sector is still facing difficulties, but supporting businesses to reduce difficulties is more effective than reducing taxes by 2%. "For example, going to Thang Long Bridge, you pay 10,000 VND, going to another bridge, you pay 9,000 VND to the driver, but the State loses 4,000 billion VND in revenue," he said. During the discussion session, delegate Ha Sy Dong ( Quang Tri delegation) said that the VAT reduction package is highly effective because this measure is based on existing tax procedures. However, the VAT reduction also has problems when classifying which items have 8% VAT and which ones have 10%. "If we could do it again, the VAT package should be reduced by 8% across the board, which would be better," delegate Ha Sy Dong expressed his opinion, contrary to delegate Huan. In addition to VAT, delegate Dong also appreciated the Government's policy of reducing gasoline tax when fuel prices increase, thereby helping the economic recovery process go more smoothly. He said that the Government also flexibly extended tax payment until the end of the year. This solution is also very necessary, businesses are able to borrow a short-term loan with 0% interest. This has a great effect on businesses when interest rates are high and bank loan procedures are difficult. However, delegate Ha Sy Dong said there is a situation of "pouring water into the rain". While the Government issued economic support policies, some industries asked for more, for example, the automobile industry asked for an extension to pay special consumption tax and registration fees. Automobile revenue in 2022 increased to a record. "It should have been reduced for all items from 10% to 8%, but it is too rigid, depending on the National Assembly and Resolution 43," Mr. Dong commented. Delegates said that in the future, if there are policies to support the economy, the first thing to think about is tax reduction, even larger numbers for some specific industries.

Dantri.com.vn

Source: https://dantri.com.vn/kinh-doanh/dai-bieu-neu-duoc-lam-lai-thi-goi-vat-nen-giam-dong-loat-8-se-tot-hon-20240525102341298.htm