On the morning of May 13, at the 9th Session of the 15th National Assembly, Minister of Finance Nguyen Van Thang, authorized by the Prime Minister, presented a draft Resolution of the National Assembly on reducing value-added tax (VAT).
This is not only a fiscal proposal, but also an important measure in the context of the Vietnamese economy needing a strong push from domestic consumption.
From the practical implementation of the 2022-2024 period, VAT reduction has promoted positive results: supporting businesses to overcome difficulties, contributing to stimulating consumption, creating jobs and maintaining macroeconomic stability.
Now that the economy is still on the path of recovery, the proposal to continue extending this policy is reasonable.
However, to truly create momentum for development, this policy must come with two key requirements: fairness and implementation efficiency.
In fact, the list of goods and services not subject to tax reduction is still too long, causing some inequality between industries, businesses and consumers.
Telecommunications, banking, insurance, real estate, metals, mining (except coal) ... continue to be outside the tax reduction policy.
Including groups of goods and services that directly affect people's production - business activities or necessary spending.
As a result, the VAT reduction policy is unlikely to reach sectors that are under high cost pressure or need to stimulate purchasing power.
For example, the telecommunications industry is the digital infrastructure of the economy, costs related to data transmission, information storage, connection platforms... if VAT is reduced, it will create a spreading effect for the entire business system.
Similarly, people still have to pay 10% VAT when buying voluntary health insurance, using financial services, or buying a house, which are large and necessary expenses.
Therefore, reviewing and narrowing the exclusion list to expand the beneficiaries of tax reduction policies needs to be considered in a fair and scientific manner, with a qualitative basis for the ability to compensate for the budget.
According to the National Assembly's Economic and Financial Committee, the expected budget revenue reduction of more than 120,000 billion VND in 18 months is not a small number, but it can be accepted if we consider the effectiveness of stimulating, creating jobs, promoting production..., thereby attracting revenue through other taxes.
On the other hand, the VAT reduction policy cannot stop at promulgation, but must be synchronous in implementation.
Therefore, it is necessary to simplify procedures to make it easier for businesses to apply, increase reasonable guidance and inspection to avoid taking advantage of profiteering policies. Cases of sales without issuing invoices, "circumventing taxes" to profit from tax rate differences need to be strictly handled.
In the context of Vietnam's economic restructuring towards improving internal resources, stimulating domestic consumption is a strategic "pillar".
Reducing VAT, if it goes in the right direction, will not only be a short-term solution to deal with difficulties but also a premise to establish a modern, fair tax policy system for the sustainable development of the economy.
