The minister noted that in the first four months of this year, State budget revenue was estimated at 733.4 trillion VND (28.81 billion USD), equivalent to 43.1% of the yearly projection, up 10.1% year on year. The results showed the health of the economy and businesses, he said.

Minister of Finance Ho Duc Phoc

Although each year, the amount of tax reduction and land rent exemption for people and businesses is about 200 trillion VND, State budget collection has still on good progress, he said.

The official affirmed that over the years, the financial sector has rolled out many measures to complete the State budge collection task, including applying e-invoice, building tax data centre and developing a trans-border online portal.

Besides, the financial sector has collected tax for business activities and real estate transfers, while guiding people and businesses to correctly declare real estate transfer prices, thus improving State management efficiency and ensuring budget revenue.

These solutions have not only supported businesses and people but also collected potential revenues that had not been collected for a long time, ensuring resources for infrastructure construction and socio-economic development, said Phoc.

The minister said that in the past haft of the tenure, the country has overcome many headwinds and challenges and is ready to enter a new stage of development. The result has important contributions from budget management and fiscal policy implementation, he said.

Expansionary fiscal policy has been implemented through exemption, reduction, and extension of taxes, fees, charges, land rent, and land use fees to support people and businesses, with a total amount of about 700 trillion VND.

In the time to come, amid lingering difficulties and challenges, the Government has proposed the National Assembly to continue implementing the 2% reduction of added value tax on particular groups of goods and products subjected to 10% VAT in the second half of this year, he said.

The MoF has asked for the Prime Minister’s permission to build a decree on the extension of deadlines for value-added tax payment, corporate income tax, personal income tax, and land rent in 2024, and another on the extension of the deadline for paying special consumption tax on domestically produced or assembled cars according to shortened procedures and procedures, so that the policy can soon come into life.

Many international organisations predicted that Vietnam’s economic growth will reach 5-6%, lower than the target set by the National Assembly, he said, holding that along with tax and fee solutions, it is necessary to synthesise and synchronise solutions, from improving the business investment environment to simplifying procedures, as well as providing support in capital, interest rates and difficulties removal. Particularly, it is crucial to speed up public investment and promote real estate market development, production and business activities and exports.

The ministry stressed the crucial need for tax support to “nurture” income sources and promote economic strengths of the people and business, along with the completion of the legal policy to smooth resources and remove difficulties in capital and market for the growth of businesses.