Legislators propose extension of VAT rate cut

ABO/NDO- Some legislators on May 25 proposed the 2% reduction in value-added tax (VAT) under a resolution of the National Assembly (NA) be extended to continue supporting the country's socio-economic recovery and development.

As part of the ongoing 7th session, the NA held a plenary sitting to discuss a supervisory delegation’s report and a draft NA resolution on results of the supervision over the implementation of the NA’s Resolution No. 43/2022/QH15, dated January 11, 2022, on the fiscal and monetary policies supporting the socio-economic recovery and development programme, and of the NA’s resolutions on some nationally important projects through 2023.

Participants shared the view that Resolution 43 is a right and timely move significantly contributing to the COVID-19 combat and socio-economic recovery and development.

Duong Khac Mai, a deputy of the Central Highlands province of Dak Nong, highly valued the resolution implementation, saying the fiscal policy applied under Resolution 43 has helped enterprises and business households in the province to quickly recover and develop production and business activities, boost growth drivers, reduce expenses, improve their proactiveness, and benefit from favourable conditions.
He held that the 2% VAT rate cut under this resolution has shown positive and direct impacts on society, helping reduce production costs, guarantee social security, and assist with people’s life.

Minister of Planning and Investment Nguyen Chi Dung gives more details about the issues of NA deputies' concern on May 25. (Photo: VNA).

Echoing the view, Tran Anh Tuan, a deputy of Ho Chi Minh City, said the VAT rate cut is among the successful policies that have benefited the economy.

Apart from helping stimulate demand and aid enterprises’ operations, it has also contributed to an increase in corporate income tax revenue, he said, proposing the policy continue in the time ahead.

Deputy Duong Van Phuoc of the central province of Quang Nam suggested the NA issue more mechanisms and policies to keep assisting with socio-economic recovery and development, as well as more measures for tackling institutional barriers to facilitate investment resources for production and business activities.

Meanwhile, the Government should keep adopting flexible fiscal and monetary policies while pressing on with comprehensive solutions to the difficulties facing the financial, monetary, corporate bond, and real estate markets.

He also suggested ministries and central agencies further simplify procedures and provide optimal conditions for people and enterprises to access resources to foster production and business activities.

Talking about the issues of deputies’ concern, Minister of Planning and Investment Nguyen Chi Dung said Resolution 43 was built in a particularly challenging context when economic growth was slowing down strongly, enterprises facing numerous difficulties, and global supply chains disrupted, requiring urgent solutions to support enterprises and people to stabilise their life and gradually shore up socio-economic aspects.

The Prime Minister, the Government, ministries, and sectors have issued many legal and guidance documents for the resolution enforcement and set up many working groups to promote implementation, he said, adding that legislators’ opinions will be considered to improve the drafting and implementation of policies.

(Source: NDO)