Deferred VAT reduction policy

According to the Ministry of Finance of Vietnam, the Ministry is actively working with relevant departments to apply to the Government and Prime Minister for the extension of the VAT reduction policy until the end of 2024. Specifically, from July 2024 to December 31, a 2% tax reduction policy will be implemented on some goods and services that are subject to 10% VAT. This policy is expected to reduce the national budget revenue by about 24 trillion yuan ($68,57 billion). This measure aims to ease the burden on and consumers and promote domestic consumption and economic recovery.

Import tax and export tax preferences

For import and export tax rates, the Ministry of Finance of Vietnam is also studying the implementation of tax preferential policies. If these policies are implemented, national budget revenues are expected to be reduced by approximately 58,75 billion Vietnam Shields annually. By reducing tax rates, Vietnam hopes to attract more international trade, enhance the competitiveness of domestic enterprises and further drive economic growth.

Reduce car registration fees

The Ministry of Finance is working with relevant departments to study applications to reduce the registration fee for domestically produced and assembled vehicles by 50% and implement it for a period of six months. If the policy is approved, the national budget revenue will be reduced by approximately $5.2 trillion. Reducing the registration fee will help stimulate the domestic automotive market, boost the development of the automotive industry chain and thereby drive the growth of related industries.

Adjustment of fee criteria

In addition, the Ministry of Finance has issued a notice to lower the fee standard for some fees, which comes into effect from July 1, and is expected to help enterprises save 700 billion yuan.

Research to reduce land rent

Regarding land rental, the Ministry of Finance will study, squeeze and report to the competent authorities on supplementary plans to reduce enterprise land rental if these schemes are adopted, tax funding for various types will be reduced by more than 30 trillion yuan.

Improve the tax policy system

At present, the Ministry of Finance is working with relevant departments to improve the tax policy system in accordance with international tax practices, meet the needs of the economic and social development strategy for 2021-2030, establish a sustainable tax system, create a favorable business environment and ensure sustainable economic development.

Tax reduction policy is effective

According to statistics, in the first six months of this year, tax reduction and fee reduction policies have saved and people about 47,3 trillion dollars in various types of tax expenses.The Ministry of Finance said that in recent years, various types of tax preferential policies have been effective in practice, helping enterprises to promote production and business, create more employment opportunities, while also contributing actively to curbing inflation, stabilizing the macroeconomic situation, safeguarding and improving peoples livelihoods.

Political Perspectives

Through a series of tax and cost adjustment policies, the Vietnamese government aims to further optimize the business environment, reduce corporate burden and enhance economic resilience. These policies will not only contribute to the current economic recovery, but will also lay a solid foundation for long-term development. In the future, as the global economic situation changes, the Vietnamese Ministry of Finance will continue to flexibly adjust policies to meet new challenges and opportunities.

Overall, these measures by the Ministry of Finance of Vietnam demonstrate the government’s firm commitment to supporting domestic production and operations activities.Through a series of targeted tax and cost reduction policies, Vietnam hopes to further boost economic growth, boost international competitiveness and ensure sustainable economic development.