A series of policies on extension and reduction of taxes and fees have been implemented. Photo: T.D

Impressive numbers

In 2022, under the close direction of the Government and together with the drastic and effective implementation of the conclusions of the Central Committee, the resolution of the National Assembly on socio-economic development in 2022 and the 5-year plan for 2021-2025, Resolution No. 01/NQ-CP dated January 8, 2022, of the Government; Resolution No. 02/NQ-CP dated January 10, 2022, of the Government, the Ministry of Finance actively monitored developments to research and submitted to the competent authorities many solutions on taxes, fees to support businesses, people and the economy to recover and develop, contributing to macroeconomic stability and curbing inflation, contributing to the overall positive results.

According to the latest report of the Ministry of Finance, in 2022, the tax authority extended the value-added tax, corporate income tax, personal income tax and land rent following Decree No. 34/2022/ ND-CP, which was about VND96.3 trillion (all the extended tax has been paid into the state budget); extending about VND 9.6 trillion of excise tax for domestically manufactured or assembled automobiles under Decree No. 32/2022/ND-CP dated May 21, 2022.

Regarding policies on tax exemption and reduction fees, the total amount of tax exemption and reduction in 2022 is estimated at VND 50.2 trillion, equal to 78.4% of the expected amount when developing the program (VND 64 trillion). In particular, the value-added tax rate is reduced from 10% to 8% for groups of goods and services currently subject to the 10% tax rate, except for some groups of goods and services as prescribed in Decree No. 15/2022/ND-CP. As a result, it reached about VND 38.9 trillion.

The Ministry of Finance also reduced the registration fee by 50% for cars, trailers or semi-trailers pulled by automobiles and similar vehicles to domestically manufactured and assembled automobiles in the country following the Decree. No. 103/2021/ND-CP, which was about VND 6.6 trillion; reduce 50% of the environmental protection tax rate on aviation fuel following Resolution No. 13/2021/UBTVQH15, which was about VND 2.1 trillion; reduce import and export duty for many groups of products under Decree No. 101/2021/ND-CP about VND 1.7 trillion.

In addition, reducing the collection of fees and charges (from January 1, 2022, to June 30, 2022) to support and remove difficulties for those affected by the Covid-19 pandemic following Circular No. 120/2021/TT-BTC about VND 900 billion.

The reduction of land and water surface rents for those affected by Covid-19 in 2022 is expected to be about VND 3.5 trillion.

Furthermore, the support package of the Socio-Economic Development and Recovery Program, in the face of the sudden spike in gasoline and oil prices in the first months of 2022, to control inflation, reduce difficulties for the economy and stabilize people's lives, the Government has reported to the National Assembly Standing Committee to issue resolutions on reducing the environmental protection tax rate for gasoline, oil and grease with an expected scale of about VND 32,000 billion. It is estimated the implementation of these policies in 2022 will be about VND 30.7 trillion.

Continue to propose appropriate solutions for 2023

It can be seen that in the context of revenue suffered many unfavorable impacts due to the Covid-19 pandemic in recent years while still ensuring the need for state budget expenditures for regular activities, ensuring capital sources for development investment, and especially increasing spending on social security and pandemic prevention, the state budget balance faced many challenges. However, the Ministry of Finance has always determined to accompany and stand with businesses and people through support solutions so that the business community can safely overcome difficulties, and restore and develop production activities, thereby contributing back to the economy and the state budget.

In particular, the policy of reducing value-added tax applied to many goods and services subject to the tax rate of 10% and reducing environmental protection tax for gasoline, oil and grease products has posed a "double effect", both helping to reduce the cost of goods and services, thereby promoting production and business, creating more jobs for workers, and contributing to controlling inflation, stabilizing the macro-economy and ensuring social security in the context of inflationary pressure and high costs. Solutions to support businesses and people on taxes, fees, charges and land rent have been developed, promulgated and implemented promptly. It has made a positive impact and is appreciated by the business community and people, thereby contributing to positive results in the recovery and development of businesses, people and the economy.

At the regular government press conference, Deputy Minister of Finance Nguyen Duc Chi said that entering 2023, it was expected that there would be many advantages and difficulties, so right in the last months of 2022, under the direction of the Prime Minister, the Government, the Ministry of Finance has researched and proposed a series of support policies on fiscal, tax and fees.

In particular, according to its authority, the Ministry of Finance has proposed and reported to the Government to extend and postpone tax payments for people and businesses to continue supporting cash flow. At the same time, it continues applying the policy of reducing land rents and environmental protection tax with petroleum products.

"The Ministry of Finance has proposed policies on taxes and fees to support people and businesses in 2023, which are similar to those applied in 2022. But of course, the policies have some adjustments compared to previous years, such as items and rate of reduction. For example, the reduction of environmental protection tax on petrol and oil will be different from 2022," Deputy Minister Nguyen Duc Chi said.

However, according to the Deputy Minister, the spirit of the Government is to continue to support people and businesses through fiscal policy and be ready for other scenarios if necessary situations arise in 2023. In addition, the Government will also operate the fiscal policy with the monetary policy and other macro policies to ensure the economy's stability on the development momentum.