Prime Minister of Vietnam to request the Ministry of Finance to submit proposal on VAT reduction until the end of 2024

Prime Minister of Vietnam to request the Ministry of Finance to submit proposal on VAT reduction until the end of 2024 (Internet image) 

On April 5, 2024, the Government issued Resolution 44/NQ-CP on the Regular Government Meeting in March 2024 and the online Government conference with localities.

Prime Minister of Vietnam to request the Ministry of Finance to submit proposal on VAT reduction until the end of 2024

The Government requests the Ministry of Finance to lead and coordinate with relevant agencies and localities to:

- Continue to strengthen financial discipline, enhance digital transformation, improve the effectiveness of state budget management in terms of revenue and expenditure, ensure timely and sufficient collection, expand the tax base and combat tax evasion, especially in the food and beverage, restaurant, e-commerce, cross-border business sectors, etc.; thoroughly cut down on regular expenditures and non-urgent spending tasks.

- Urgently study and submit to the Government and the Prime Minister before April 30, 2024, regulations on extending tax payment deadlines (value-added tax, corporate income tax, personal income tax, special consumption tax on domestically produced cars, etc.), reduction of automobile registration fees for domestically produced and assembled automobiles, reduction of  rents for land and water surface; promptly consider and issue policies for reduction of tax, fees, and charges according to the authority or propose to the competent authority to issue such policies as implemented in 2023 to continue to address difficulties and support business activities. Summarize and evaluate the results of reducing value-added tax rates to report at the 7th Session of the 15th National Assembly for consideration and approval to be implemented in the last 6 months of 2024.

- Urgently review and consolidate the allocated expenditures according to Resolution 105/2023/QH15 of the National Assembly on the allocation of the central budget for 2024, report and propose to the competent authority before April 10, 2024.

- Focus on completing the draft Decree of the Government on budget estimation, management, and regular use of state budget funds to implement investment projects for construction, renovation, upgrading, and expansion of already invested construction projects; procurement of assets; purchase, repair, and upgrade of equipment and machinery, submit to the Government before reporting to the Standing Committee of the National Assembly according to the conclusions of the meeting on March 27, 2024, chaired by Deputy Prime Ministers Le Minh Khai and Tran Luu Quang.

- Direct the State Securities Commission to urgently conduct a comprehensive review and thorough inspection of the securities trading system, information technology system to promptly address any security vulnerabilities and risks (if any); proactively establish risk control procedures, handling measures, and response to urgent situations to ensure the security and safety of the financial system and the rights and interests of investors according to the Prime Minister's directive in Notice 122/TB-VPCP on March 27, 2024, from the Government Office.

- Actively review and improve the Plan on establishing and developing the carbon market in Vietnam, report to Deputy Prime Minister Tran Hong Ha before seeking the opinions of the National Steering Committee for implementing Vietnam's commitments at COP26 according to the directive in Notice 09/TB-VPCP on January 11, 2024.

- Urgently complete the application for handling debts under the Government's responsibility at the Shipbuilding Industry Corporation (SBIC) according to the conclusions of Deputy Prime Minister Le Minh Khai at the meeting on March 29, 2024.

- Study and regulate the subject that must implement electronic invoices generated from cash registers, small-scale businesses (determined by the labor criteria) using electronic devices, cash registers connected to the Tax Authority during the process of amending Decree 123/2020/ND-CP.

More details can be found in Resolution 44/NQ-CP issued on April 5, 2024.

Ho Quoc Tuan

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