Continue to implement tax policies to support businesses
According to the Ministry of Finance, based on an overall assessment of tax solutions implemented in the 2020-2024 period, it can be seen that in recent times, many support solutions on taxes, fees, charges and land rents to reduce the contribution obligations of businesses and people have actively contributed to the recovery and development of the socio-economy.
The implementation of solutions on extending, exempting and reducing taxes, fees, charges and land rents; especially the policy of reducing value added tax (VAT) by 2% has directly impacted people, stimulating domestic consumption. This is of great significance as, together with investment and export, domestic consumption is one of the three important driving forces for economic growth.
Therefore, in 2025, the Ministry of Finance will continue to reduce fees and charges by 10-50% to encourage people and businesses to use online public services; effectively implement export tax schedules, preferential import tax schedules, lists of goods and absolute tax rates, mixed taxes, and import taxes outside tariff quotas, including adjusting import tax and export tax policies to remove difficulties for production and business according to Decree No. 144/2024/ND-CP dated November 1, 2024 amending and supplementing a number of articles of Decree No. 26/2023/ND-CP dated May 31, 2023.
According to Associate Professor Dr. Nguyen Thuong Lang - National Economics University, flexible financial policies have brought practical benefits to people, businesses as well as to the recovery and development of the socio-economy, contributing directly to the national economic growth rate. Although the state budget has been under great pressure when implementing measures such as tax and fee reductions to support businesses, this has created an abundant source of liquidity for businesses, while effectively promoting domestic consumption and production activities. Tax exemption, reduction and extension policies will be an important basis for promoting sustainable economic development in 2025 and the following years.
“The Government’s tax support policies will help businesses have more resources to improve technology, enhance product quality, thereby increasing competitiveness in the market. This will be an important boost for small and medium enterprises, helping them overcome difficult times,” said Dr. Nguyen Thuong Lang.
Continue to implement 2% VAT reduction
In the context of production and business activities still facing difficulties; production costs are still high; domestic purchasing power shows signs of slowing down. In order to contribute to creating a driving force to promote and develop the economy, it is necessary to continue implementing solutions to promote aggregate demand, focusing on domestic consumption demand.
Therefore, the Ministry of Finance continues to submit to the Government and the National Assembly to implement a 2% reduction in VAT rates for groups of goods and services currently subject to a tax rate of 10% (to 8%), except for the following groups of goods and services: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax. The application period is from January 1, 2025 to June 30, 2025.
Speaking with Lao Dong, Dr. Nguyen Tri Hieu - a financial expert - assessed that reducing the VAT rate by 2% could have many positive impacts on the economy, helping to strengthen businesses and promote domestic consumption.
According to Dr. Nguyen Tri Hieu, tax exemption, reduction and deferral policies can be an important part of efforts to support businesses, but to achieve high efficiency, it is necessary to combine and synchronously implement other mechanisms and policies to be effective.
