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The Ministry of Finance does not agree to reduce VAT and car registration fees

The Ministry of Finance does not agree to reduce VAT and car registration fees 1

The Ministry of Finance does not agree to reduce VAT and car registration fees

In the latest report on the draft Resolution on solutions to overcome difficulties in Covid-19, drafted by the Ministry of Planning and Investment, the Ministry of Finance does not agree to reduce value added tax (VAT) by 50% from

Headquarters of the Ministry of Finance.

This Ministry explains that this is an indirect tax, consumers are the ones who have to pay the tax.

Receiving the above comments, the Ministry of Planning and Investment has proposed to amend the regulations to allow the postponement of VAT payment until September for raw materials, goods, and services in industries affected by the epidemic.

Similarly, the Ministry of Finance does not agree to reduce corporate income tax by 50% for small and medium-sized enterprises and cooperatives in 2020 because this content overlaps with some expected policies.

The 50% reduction in registration fees when registering domestically produced or assembled cars until the end of 2020 was also not agreed by the Ministry of Finance because if passed, it would violate the international commitment on non-discrimination between

The Ministry of Finance only approved a 50% reduction in environmental protection tax on aviation fuel to save the aviation industry because this industry was most heavily affected.

Regarding other transportation industries, the Ministry of Finance believes that the Law on Environmental Protection does not stipulate environmental protection tax exemption or reduction, so it is not included in the draft Resolution.

In the context that ministries have many different views on tax and fee exemption and reduction policies, a leader of the Tax Policy Department (Ministry of Finance) said that the above contents are being discussed at the regular monthly Government meeting.

`After the Government’s Resolution is issued, the Ministry of Finance and affiliated agencies will carry out related work according to their authority,` this person shared with VnExpress.

Previously, the Private Economic Development Research Board (Division IV) and a number of associations proposed reducing VAT from 10% to 5% to reduce costs for consumers and stimulate demand for industries during and after the epidemic.

According to businesses, being subject to a 10% tax rate and having to wait until the end of the year to receive a tax refund will cause many difficulties and make it difficult to implement policies to stimulate consumption with the products and services that businesses provide.

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