Thus, the 2% reduction in value added tax (VAT) remains the same as last year and does not apply to commodity groups such as: telecommunications, information technology, finance, banking, etc., securities, insurance, real estate, metals, prefabricated metal products, mining products, refined Petroleum, chemical products and items subject to excise duty.

Previously, many MPs in the National Assembly had proposed expanding the range of tax subjects entitled to a 2% tax reduction to all categories of goods and services currently subject to the 10% tax rate; at the same time increase the reduction rate more sharply to 3%, 4% or 5% or extend the period of validity of the scheme until mid-2024 or the end of 2024 so that the scheme can be more effective in stimulating demand. , creating momentum for economic growth.

However, Secretary-General of the National Assembly and Chairman of the Office of the National Assembly Bui Van Cuong said that in the afternoon session on June 24, he presented a report explaining, absorbing and revising the draft resolution of the 5th session of the 15th National Assembly that the scope of the VAT reduction with a further expansion of the scope will have a strong impact on state budget revenues.

At the same time, the government has not fully calculated and assessed the impact of the policy, especially considering that state budget revenues decreased in the first months of the year compared to the same period last year.

Therefore, the Chairman of the Office of the National Assembly proposed to keep the scope and scale of the VAT reduction as in the draft resolution, while proposing that the government should report to the National Assembly at the 6th Session on the results of implementing the reduction policy. % VAT together with the results of the implementation of Resolution 43 for the National Assembly to consider and decide, if necessary, additional solutions to support economic recovery and development…

According to the assessment, in connection with the forecast of the complicated situation in the world and in the country, difficulties with the economy and companies are increasing, which puts great pressure on the macroeconomic stability, recovery and development of many countries. Continued across industries and sectors In line with the current economic context, a reduction in VAT to 2% is needed to provide immediate support to people and businesses. This will promote the speedy recovery and development of production and business activities to contribute to the state budget and the economy.

What worries observers, however, is that the rule, which excludes certain groups of goods and services, as in Resolution 43, also increases the compliance burden for taxpayers and the administrative burden for tax authorities. Therefore, implementing the 2% VAT reduction policy in 2023 should be easier and more convenient than last year.

According to estimates, the budget is expected to reduce revenue by about VND24,000 billion if this tax cut is applied in the last six months of the year. The state budget revenue in 2023 alone is expected to decrease by VND 20,000 billion as the VAT payable in December 2023 will be paid in January 2024.

In order to overcome and balance the impact on state budget revenues in the short term, as well as to ensure initiative in managing state budget estimates, the Ministry of Finance will coordinate with relevant ministries and branches, and municipalities will focus on controlling the implementation and effective implementation of tax law.

At the same time, continue to reform and modernize the tax system and simplify tax administration procedures. In addition, it drastically addresses the management of government revenue, with a focus on the timely and effective implementation of revenue management solution groups, combating revenue loss, transfer pricing and tax evasion.