The Vietnamese Government Office has just issued a document to the Ministry of Finance, conveying the opinions of Deputy Prime Minister Le Minh on the 2023 tax reduction plan.
Specifically, with regard to value-added tax reductions, Li Ming’s Deputy Prime Minister agreed in principle that the Ministry of Finance should report to the government to submit to the National Assembly and the Standing Committee of the National Assembly for review and approval on the establishment and issuance of a parliamentary resolution on reducing value-added tax in accordance with simplified procedures.
Prior to this, on April 14, the Ministry of Finance had submitted the tax and fee reduction plan for 2023 to the Prime Minister.
Specifically, the Ministry of Finance proposes to reduce the value-added tax rate of all goods and services subject to a 10% tax rate by 2% (to 8%); When invoices, 20% VAT calculation tax rate is reduced or exempted.
The Ministry of Finance stated that the plan is to ensure that the goal of stimulating consumer demand is in line with the current economic situation, so as to promote the recovery and development of production and business activities as soon as possible, and contribute to the national budget and economic growth. The Ministry of Finance recommends that the applicable period be from the date of policy release to December 31, 2023.
In addition, the Ministry of Finance also proposed to continue to reduce the collection of about 35 fees. The applicable period is from July 1, 2023 to December 31, 2023.
In order to support the people and businesses as soon as possible, the Ministry of Finance is seeking the approval of the government to issue notifications under the simplified procedure.