Tax policy – “A dose” to help businesses recover

Tax policy to support businesses

Prime Minister Pham Minh Chinh has just signed Official Letter No. 252 on March 16 on urging the drastic and effective implementation of the socio-economic recovery and development program. In which, ministries, branches, provinces and cities are required to immediately implement Resolution 42 of the National Assembly and Resolution 11 of the Government on fiscal and monetary policies.

In addition to monetary policy, reducing interest rates is tax fiscal policy well people, business community In the past time very much looking forward to and appreciated. Of the five tax policies outlined in Resolution 11 of the Government, the first three have been implemented so far, helping the business community and people to benefit immediately.

A series of tax policies were issued to help the business community and people benefit immediately. Illustration – Photo: People’s Newspaper.

2% VAT discount

From the beginning of February to the end of this year, value-added tax on some basic commodity groups will be reduced from 10% to only 8%, according to Resolution 15 of the Government. That means that with the same amount of money to go to the market, now consumers can buy a little more things.

Buyers benefit, sellers also benefit because input VAT is reduced.

Mr. Nguyen Manh Hung – Owner of HT Mart supermarket chain 110 Cau Giay – Hanoi, said: “The tax reduction helps businesses import cheaper goods and sell better. Customers coming here because it’s cheaper and more crowded is also a stimulus to demand. common to the whole society. In my opinion, this is a very good policy.”

50% off registration fee for cars

From December 2021 to the end of May 2022, the registration fee for domestically assembled and manufactured cars will be reduced by 50%, according to Decree No. 103 of the Government. Consumers save money on car purchases. Sellers also sell more cars.

“Since the policy of reducing registration fees, our orders have doubled,” said Mr. Nguyen Quang Thao – Hyundai dealer director Le Van Luong.

50% reduction of environmental protection tax with jet fuel

In 2022, the environmental protection tax rate on jet fuel will be reduced by 50% compared to the current level, to only 1,500 VND/liter.

According to calculations, aviation businesses will save nearly 1,600 billion VND. This is a significant resource to help businesses recover after a very difficult period due to the epidemic.

Businesses look forward to tax extensions and land rent reductions soon

Thus, there are only 2 policies, which are 30% reduction of land rent, water surface rent and extension of tax payment, still waiting to be issued. The business community affected by the epidemic said that these are two policies they are looking forward to being able to implement soon, because the support from these two policies is huge.

Last year, Dong Xuan Joint Stock Company saved more than 7 billion VND from the policy of 30% reduction in land rent, not to mention the tax payment extension of many billion VND. Thanks to that, despite being affected by the epidemic, the company’s business situation is still stable. This year, businesses look forward to continuing to enjoy this meaningful policy soon.

“In 2022, businesses expect the Government to continue to support land rent because the company’s land rent is very large,” said Ms. Tran Thu Ha – Chief Accountant, Dong Xuan Joint Stock Company.

Mr. Tran Van Bich – Deputy Director of PSA Asset Management and Exploitation Joint Stock Company said: “In 2021, with the benefit of the Government’s tax extension policy, we have more money that has not yet been paid. due tax of billions of dong monthly to focus on production and business activities, purchase consumables, and pay suppliers in a timely manner in the context of many difficulties. I restore production”.

According to experts, the tax payment extension policy is very meaningful to businesses. This is essentially an interest-free loan from the State for businesses within 4 to 6 months.

“The government has spent its difficulties, giving advantages to businesses and businesses will benefit. In those 6 months people will have to borrow from banks and appropriate that money to do business. This is a good solution. and this time should be implemented immediately,” said Ms. Nguyen Thi Cuc – Chairman of the Vietnam Tax Consultants Association.

In 2021, more than 140 thousand businesses and millions of eligible business households have been extended taxes, with an amount of over 96 trillion VND.

Expected amount to be extended from taxes is about 135 trillion dong. Illustration – Photo: VNA.

Responding to the expectations of the business community, in an interview with a VTV reporter, a representative of the General Department of Taxation said that the Ministry of Finance had submitted to the Government 2 drafts of the Decree on reducing land and water surface rents and family costs. tax payment deadline.

Ms. Pham Thi Minh Hien – Deputy Director of Policy Department, General Department of Taxation, Ministry of Finance said: “The proposal is basically the same as it was made in 2021 according to the provisions of Decree 52. Specifically, value tax The General Department of Taxation is proposing a maximum extension of 6 months for the amount payable from March to May of the first quarter of 2022. The final payment deadline is December 31, 2022. As for corporate income tax. , the extension period is two quarters. In the first and third quarters, the extension period is 3 months”.

Thus, it is only a few days that the community of millions of business households and businesses affected by the epidemic will soon enjoy the policy of 30% reduction in land and water surface rent and tax payment extension.

Expected amount to be extended from taxes is about 135 trillion dong. This is not a small amount of money, which is considered an effective “medicine”, helping businesses recover after a period of “violent illness” due to the COVID-19 epidemic, showing the sharing, companionship and support with the company. Government enterprises.

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