Delegates discuss at the forum.

Tax support solutions account for about 10-15% of total budget revenue

Regarding the implementation of solutions to support the economy in the past time, Dang Ngoc Minh, Deputy Director General of the General Department of Taxation, said that during the Covid-19 and post-Covid-19, the Government has implemented many policies to stimulate market demand through fiscal measures, in which policies on tax exemption, reduction and extension play a pivotal role.

Specifically, these policies aim to reduce the tax burden on businesses and people, helping to overcome difficulties in the context of the economy being seriously affected by the pandemic.

“According to statistics, from 2020 to present, on average each year, tax support solutions have accounted for about 10-15% of the total state revenue. This is a fairly large proportion and reflects the effectiveness of fiscal policies in maintaining economic activities,” said Dang Ngoc Minh.

In 2024, although the economy has shown signs of recovery since the end of 2023, the real estate market still faces difficulties and congestion, causing negative impacts on the economy.

Therefore, the Government has continued to implement tax exemption, reduction and deferral measures with a total value of up to VND97,000 billion, helping more than 100,000 beneficiaries.

“These tax support policies have directly impacted the financial resources of enterprises, contributing to maintaining production and business and promoting consumption, thereby creating momentum for economic recovery and development,” said Minh.

Mr. Dang Ngoc Minh

These policies are not only general but also very specific. For example, the environmental protection tax on petroleum products in 2024 has been reduced by VND31,000 billion. The environmental protection tax on aviation gasoline has also been down VND2,000 - 3,000 billion.

The Government has also reduced land rents for enterprise projects, thereby supporting enterprises in reducing input costs. As of November, the reduced Value-added tax was about VND67,000 - 70,000 billion.

“Thus, the amount of tax deferral and reduction policies could be up to about VND100,000 billion, of which VND80,000 billion would be reduced for consumers. This has helped stimulate consumption and create financial resources for businesses to serve investment in production and business,” said Mr. Minh.

Domestic revenue has exceeded the annual estimate

Commenting on the impact of implementing support solutions on the State revenue, Minh emphasized that although during the implementation of tax deferral measures, the State revenue tends to decrease, this is a macro policy of the Government to stimulate consumption and investment.

In fact, the State revenue has exceeded the target for three consecutive years. For example, the domestic revenue in 2023 exceeded VND200,000 billion.

Minh said that the Tax sector was assigned the revenue target of VND1,448 trillion for 2024. However, by the end of November, the domestic revenue had exceeded the estimate.

“In 2024, although VAT for the whole year continued to fall 2%, by the end of November 2024, the total state revenue managed by the Tax sector reached VND 1,538 trillion, exceeding the estimate by 3.7%,” Minh said.

According to the representative of the General Department of Taxation, if calculated for the whole year, the total domestic revenue is forecast to exceed VND 220,000 billion and this important resource will be used to invest in infrastructure projects and large works for economic development.

Minh also emphasized that although the Government has reduced taxes, the revenue from some important areas continues to grow.

For example, although VAT has decreased, the revenue from this tax has still went up more than 10% over the same period, especially from the non-state sector. The revenue from Corporate income tax (CIT) has also increased by 2%.

“This shows that the positive impact of stimulus policies has helped growth and created investment resources for the economy, and not only has reduced the burden on businesses but also created momentum to promote growth,” said Minh.

Additionally, the Tax sector has effectively implemented solutions to improve tax management, such as actively implementing digital transformation and electronic invoices, etc. These solutions help strengthen the effectiveness of tax management, especially in tax refunds.

“The efforts of the Finance sector in general and the Tax sector in particular have not only helped businesses recover but also contributed to stimulating consumption in society. Although the revenue target is not easy to achieve in a difficult context, the revenue collection results in 2024 have exceeded expectations,” Minh said.