Evaluating the practical basis of implementing a 50% reduction in fuel consumption rates for domestically produced and assembled cars in recent times, the Ministry of Finance said that people and businesses have received financial support through direct Continue to reduce the cost of car ownership registration, thereby stimulating demand and motivating people and businesses to purchase domestically produced and assembled cars to serve consumer and production and business needs. .
Thereby, supporting domestically produced and assembled car manufacturers and distributors to sell their inventory of cars since the COVID-19 epidemic broke out.
The Ministry of Finance said that over the years, the reduction in LPTB revenue also had an impact on reducing state budget revenue, respectively 7,314 billion VND; 7,896 billion VND and 5,238 billion VND.
If 2024 continues to reduce LPTB revenue, it is expected that the state budget will reduce revenue by about VND 5,200 billion.
However, it cannot be denied that the 50% reduction in LPTB revenue leads to increased sales of domestically produced and assembled cars, thereby increasing revenue from value added tax (VAT) and consumption tax. special (TTDB).
The Ministry of Finance said that in 2024, the world situation will continue to become complicated and unpredictable with many difficulties and challenges.
Domestically, the socio-economic situation in the first 6 months of 2024 tends to recover positively in most fields. The macroeconomy is basically stable, inflation is controlled. Although economic growth has achieved good results, it still faces many challenges from inflation pressure, exchange rates tend to increase, financial and currency markets still have potential risks, and production and business activities businesses and people still face many difficulties.
Therefore, one of the tasks and financial solutions that can be implemented is to continue implementing policies to reduce taxes, fees and charges to contribute to solving difficulties for production and business.
Basically, the opinions of ministries, branches and localities agreed with the draft Decree. In addition, the Ministry of Planning and Investment, the Ministry of Justice, and the Ministry of Industry and Trade are of the opinion that continuing to reduce the LPTB as drafted in the Decree will violate international commitments, leading to the risk of being fined for violations or violations. retaliation from countries that Vietnam exports goods to, it is necessary to develop plans to proactively respond.
Therefore, after analyzing the advantages and disadvantages of each option, the Ministry of Finance proposed that the Government consider not reducing the LPTB tax rate for domestically produced and assembled cars.
To respond to violations of international commitments as stated by the Ministries, the Ministry of Finance submitted to the Government to assign the Ministry of Industry and Trade to preside over and coordinate with relevant agencies to review and develop a response plan in the case of Vietnam. sued for violating international commitments.
Previously, the Ministry of Finance submitted a draft Decree regulating the reduced tax rates for cars, trailers or semi-trailers pulled by cars and vehicles similar to domestically produced and assembled cars.
Accordingly, the Ministry of Finance proposes that from August 1, 2024 to January 31, 2025, the LPTB reduction rate for domestically produced cars will be equal to 50% of the fee level specified in Decree 10/2022/ND-CP regulating regulations on LPTB; Current Resolutions of the People's Council or Current Decisions of the People's Committees of provinces and centrally run cities on reduced rates of local car registration fees and documents amending and supplementing , replace (if any).
From February 1, 2025 onwards, this LPTB rate will continue to comply with the provisions of Decree 10/2022/ND-CP regulating LPTB; Current Resolutions of the People's Council or Current Decisions of the People's Committee of provinces and centrally run cities on local registration fee collection rates and documents amending, supplementing and replacing (if any).
