Promoting Economic Growth through Ongoing Tax and Fee Reductions

In line with its commitment to assist businesses and individuals in overcoming challenges and revitalizing the economy, the Ministry of Finance (MoF) has persisted in proposing and implementing policies to exempt, reduce, and extend taxes, fees, and charges. Under its authority, the MoF has issued a circular that reduces 35 fees and charges across various sectors, including securities, healthcare, citizen identification, and construction investment project appraisal. This reduction will be effective from July 1 to December 31 of this year, resulting in an estimated decrease of approximately VNĐ700 billion (US$29.2 million) in state budget revenue.

To promptly address obstacles, mobilize resources, enhance access to credit capital, and foster growth while maintaining macroeconomic stability, Prime Minister Phạm Minh Chính has recently issued Official Telegram 990/CĐ -TTg on October 21. This directive emphasizes the need to implement measures that facilitate access to credit capital, alleviate challenges faced in production and business activities, and achieve the socio-economic development plan and state budget targets for this year. The Prime Minister has specifically tasked the MoF with proactively proposing solutions for tax and fee exemptions, reductions, and extensions for the upcoming year, ensuring timely consideration and decision-making by relevant authorities. Furthermore, concerted efforts are required to surpass the National Assembly’s revenue estimate for this year.

In order to stimulate domestic consumption, the MoF has put forth various financial policy solutions. These include the continuation of a 2% reduction in value-added tax and the potential reduction of the environmental protection tax rate for gasoline and oil, as implemented this year. Additionally, the MoF will review and lower export and import tax rates to support domestic production and business, while also reducing the collection of certain fees and charges.

Regarding budget revenue for the current year, the MoF reports that it has reached 85% of the target, equivalent to VNĐ1.36 quadrillion, as of October 30. In the remaining months of the year, the MoF will persist in implementing solutions, ranging from electronic invoice initiatives to the establishment of tax data centers and cross-border electronic information portals.

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