The Tax Department has implemented the Economic Recovery and Development Program with over 174,000 billion VND. Photo: H.Dịu

174 trillion VND to support people and businesses

In 2022, the state budget revenue will be affected by many unfavourable impacts, production and business of enterprises will face many difficulties, and the implementation of solutions on tax policies, fees, and charges to remove difficulties for production and business has also posed significant challenges with the task of budget collection. However, the tax industry is always determined to accompany and stand side by side with businesses through support solutions so that the business community can safely overcome difficulties, soon restore and develop production and business activities, thereby will contribute back to the economy and the state budget.

According to statistics of the General Department of Taxation, in 2022, the whole tax sector has continued to implement policies on extension, tax exemption and reduction, and land rent to support people and businesses, implement the Program of Economic Recovery and Development with a total amount of over 174,000 billion VND.

The tax sector has reduced value-added tax according to Decree No. 15/2022/ND-CP of the Government by about 20,040 billion VND; reduced the environmental protection tax rate on jet fuel according to Resolution No. 13/2021/UBTVQH15 dated December 31, 2021, and Resolution No. 20/2022/UBTVQH15 dated July 11, 2022, about VND 1,906 billion. At the same time, decreasing the environmental protection tax rate by 50% for gasoline, diesel, mazut oil, lubricants and greases; reducing the environmental protection tax rate for kerosene by 70% according to Resolution No. 18/2022/UBTVQH15 from April 1, 2022; decreasing the utmost environmental protection tax bracket for gasoline, diesel, mazut oil, lubricants, grease, kerosene, and jet fuel according to Resolution No. 20/2022/UBTVQH15 from 11/7/2022 is estimated at 26,307 billion VND.

Notably, in 2022, the whole tax sector has extended the tax payment deadline under Decree 34/2022/ND-CP by about VND 96,316 billion, extending the special consumption tax on domestically manufactured and assembled cars according to Decree 32/2022/ND-CP dated May 21, 2022, of the Government about VND 9,603 billion; reducing the collection of some charges under Circular 120/2021/TT-BTC by about 900 billion VND.

Thanks to the effective implementation of tax and fee support policies that have given businesses and people more motivation to overcome difficulties caused by the Covid-19 pandemic and quickly revive production and business and promote development. According to the General Department of Taxation, up to now, there are 887,616 enterprises in production and business activities nationwide. Furthermore, there is an increase of 33,421 enterprises compared to the end of 2021. As a result, the tax sector collects state budget revenue impressively, with an estimated revenue of 1,460,100 billion VND, equal to 124.3 % of the ordinance estimate (exceeding 285,200 billion VND).

"Dual effect" for businesses

According to the Tax Policy Department, the General Department of Taxation, in the context that the country must realize the dual goal of preventing and controlling the Covid-19 epidemic and promoting socio-economic development, solutions to support businesses and people on taxes, fees, charges and land rent in 2022 have been urgently formulated, promulgated and implemented, removing difficulties for people and businesses. The solution to exempt and reduce taxes, fees, charges and land rents is meant as an amount of money from the State directly supporting the costs of enterprises, helping businesses have more "abundant" financial resources to maintain production and business. Furthermore, for the policy of extending the tax payment and land rent duration, the extended tax amount is similar to an interest-free loan, creating conditions for enterprises to quickly rotate capital, maintain production and business, and is the basis for businesses to recover and contribute to the development of the economy.

In addition, 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 have had "dual effects", both helping to reduce the cost of goods and services, thereby increasing purchasing power, promoting production and business, and creating more jobs for workers, while also contributing to controlling inflation, stabilizing the macro-economy and ensuring social security in the context of inflationary pressure and rising costs.

Despite facing many difficulties and obstacles, after being promulgated, the above policies were highly appreciated by the business community and people, showing the concern, sharing and support of the State in general and the Tax sector in particular for businesses and entrepreneurs in all industries, professions and fields, contributing to the process of socio-economic recovery and development of the country.

Before the 2023 forecast, there are new opportunities and advantages mixed with difficulties and challenges, and the impact of the Covid-19 pandemic may persist. Commodity and gasoline prices are difficult to forecast, and material input and production costs increased, affecting production and business production capacity, causing supply shortage, and creating pressure on inflation and commodity prices. Therefore, in addition to the drastic and effective implementation of the tasks, supporting solutions have been issued; the Tax sector will continue to closely follow and firmly grasp the business situation of enterprises and business households as well as the taxes that need to be collected, in which, focuses on exploiting large revenue sources, especially in the fields of real estate business; construction of works and projects; Lodging; exploiting mineral resources; digital business and e-commerce, etc, ensuring fairness in tax obligations. Besides, concentrates on handling tax arrears to supplement state budget revenue.