Closing 2% VAT reduction until the end of June 2025
On the afternoon of November 30, according to the newly approved Resolution of the 8th Session of the 15th National Assembly, the National Assembly agreed to continue reducing the VAT rate by 2% for groups of goods and services specified in Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program.
The 2% reduction in VAT will apply to groups of goods and services currently subject to a 10% tax rate (to 8%).
This regulation does not apply to 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.
According to the Resolution, the 2% VAT reduction period will be extended from January 1, 2025 to June 30, 2025.
Currently, according to Decree 72 of the Government, the regulation of reducing 2% VAT on some groups of goods will expire on December 31, 2024. Thus, with the newly approved Resolution, the 2% VAT reduction will be extended for another 6 months.
Also in the resolution, the National Assembly assigned the Government to organize implementation and take responsibility for ensuring the collection task and the ability to balance the state budget in 2025 as decided by the National Assembly.
The National Assembly also assigned the Government to urgently issue a Decree on customs management of exported and imported goods traded via e-commerce channels. Ensure that import tax exemptions are not allowed for small-value goods, providing a basis for tax authorities to have a legal basis and sanctions to manage collection of foreign e-commerce platforms selling goods to Vietnam.
Agree to add more than 20,000 billion VND in capital to Vietcombank
In the Resolution of the 8th Session, the National Assembly also approved the policy of investing additional state capital to maintain the state capital contribution ratio at the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) with an amount of more than VND 20,695 billion from stock dividends distributed to state shareholders from the remaining accumulated profits up to the end of 2018 and the remaining profits in 2021 of this bank.
The National Assembly assigned the Government and the Prime Minister to direct the investment and supplement of state capital at Vietcombank in accordance with the provisions of law; to be responsible before the National Assembly for the accuracy of data and the scale of state capital supplementation for this bank.
In addition to Vietcombank, the National Assembly also approved solutions to continue removing difficulties caused by the COVID-19 pandemic so that Vietnam Airlines Corporation can soon recover and develop sustainably.
Allow Vietnam Airlines Corporation to offer additional shares to existing shareholders to increase charter capital with a maximum scale of VND 22,000 billion.
In phase 1, the Government is allowed to assign the State Capital Investment Corporation to represent the Government in investing in purchasing shares at Vietnam Airlines Corporation under the State shareholder's right to purchase shares by transferring the right to purchase when Vietnam Airlines Corporation implements the plan to increase charter capital in phase 1 with an issuance scale of 9,000 billion VND.
In phase 2, the National Assembly approved the policy and assigned the Government to direct the implementation of the plan (including the plan for the State to transfer the right to purchase shares to enterprises) with a maximum issuance scale of VND 13,000 billion. In case of any problems, continue to report to the competent authority.
The National Assembly also allows Pacific Airlines Joint Stock Company to erase late payment fines and late payment fees calculated on tax debts arising according to decisions of competent tax authorities, outstanding until December 31, 2024.
