Legislators propose extension of VAT rate cut at 7th session

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.
Legislators propose extension of VAT rate cut
Minister of Planning and Investment Nguyen Chi Dung gave more details about the NA deputies' concerns on May 25. (Source: VNA)

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 the 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 program, and of the NA’s resolutions on some nationally important projects through 2023.

Participants shared that Resolution 43 is a right and timely move significantly contributing to 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 favorable conditions.

He held that the 2% VAT rate cut under this resolution has had positive and direct impacts on society, helping reduce production costs, guarantee social security, and improve people’s lives.

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.

He said that in addition to helping stimulate demand and aid enterprises’ operations, it has also contributed to an increase in corporate income tax revenue, and he proposes that the policy continue in the future.

Deputy Duong Van Phuoc of the central province of Quang Nam suggested that the NA issue more mechanisms and policies to continue assisting with socio-economic recovery and development, as well as more measures to tackle 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 were facing numerous difficulties, and global supply chains were disrupted, requiring urgent solutions to support enterprises and people to stabilize 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.

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(Source: VNA)