Business

Government agrees with MoF’s proposal on 2% VAT reduction for 2023

The Government has agreed with the Ministry of Finance (MoF)’s proposal on a plan to reduce taxes, fees and charges for 2023, which suggested a 2% reduction in the value added tax (VAT) on goods and services subject to a 10% VAT.
Government agrees with MoF’s proposal on 2% VAT reduction for 2023 ảnh 1Illustrative image (Source: vtv.vn)
Hanoi (VNA) –The Government has agreed with the Ministry of Finance (MoF)’s proposal on aplan to reduce taxes, fees and charges for 2023, which suggested a 2% reductionin the value added tax (VAT) on goods and services subject to a 10% VAT.

According to adocument sent from the Government Office to the MoF, Deputy Prime Minister LeMinh Khai agreed on principle that the MoF reports to the Government forsubmission to the National Assembly (NA) and NA Standing Committee forconsideration and permission of the building and issuance of a NA resolution onVAT reduction with simplified order and procedures.

The Deputy PM askedthe MoF to work with the Ministry of Justice and other relevant ministries andagencies on the drafting of the resolution, and report to the Government beforeApril 25.

Regarding thecontinued reduction of fees and charges, the Deputy PM ordered the MoF to activelybuild relevant regulations on the work.

Under the MoF’sproposal submitted to the PM on April 14, the ministry suggested a VAT reductionfrom 10% to 8% for a number of goods and services, along with a 20% cut in the percentageof goods for VAT calculation for business establishments (including businesshouseholds and individuals) when issuing invoices for all goods and services subject to the VAT.

The ministry suggestedthat the policy, which is expected to boost the economy, should be applieduntil December 31.

It estimated that thepolicy will result in a reduction of 5.8 trillion VND (246.7 million USD) monthly for the State budget's revenue, or about 35 trillion VND for the last sixmonths of this year.

Besides, the MoFalso proposed a reduction on about 35 kinds of fees and charges from July 1to December 31.

Last year, similarpolicies provided businesses and people with a support worth about 233 trillionVND (9.91 billion USD) ontaxes, land rents, fees and charges./.
VNA
#Ministry of Finance #value added tax (VAT) #Deputy Prime Minister Le Minh Khai #fees and charges #and rents #Vietnam #Vietnam news #Vietnam News Agency
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