(VOVWORLD) -The State has cut value-added tax (VAT) 2%, reduced land rent, and deferred tax payment for businesses and individuals, but the total state budget revenue in 7 months of this year still reached 42.5 billion USD, equal to nearly 63% of the yearly estimate. In particular, collection from production and business is increasing, reaching 63.4% of the estimate. These numbers demonstrate that the tax incentives have been on the right track.
Thanks to the 2% VAT reduction policy which began a month ago, Gia An Group Joint Stock Company has saved nearly 9,000 USD in purchasing raw materials. In addition, a series of policies including tax deferment, land rent exemption and reduction, and value-added tax refunds have helped the company save 420,000 USD to invest and restore production and business. The company hopes that its business activities will remain stable and the market will recover in the last months of the year, when it has more orders, its tax payment may increase to about 160,000 USD.
Nguyen Chi Trung, Chairman of the Board of Directors of Gia An Group JSC, said: “Tax incentives have helped businesses accumulate profits and pay tax to the state as well as improve workers' lives. Within a short time, tax incentives have helped our business save tens of thousands of USD. This is a motivation for us to move forward in the coming months.”
Thanks to the Government's timely support policies, businesses have restored their production and business activities and also acquired more resources to contribute to stabilizing the market and stimulating demand.
Phan Van Dung, Deputy General Director of the Vietnam Animal Industry Joint Stock Company, said: “With regard to the Government's tax incentives, plus the internal resources of businesses and the promotions that we have been implementing regularly, we expect our revenue in the last 6 months of the year will increase from 10 to 15%.”
With the positive results of the tax policy, the Ministry of Finance will continue to advise the Government on solutions to remove difficulties for businesses and promote production.
Pham Thi Minh Hien, Deputy Director of the Policy Department of the General Department of Taxation, said: “We have submitted to the Ministry of Finance and the Government a request to issue Decree 12 on extending the deadline for payment of value-added tax and corporate income tax, personal income tax and land rent in 2023. The move aims to further reduce difficulties for businesses and individuals, help them to focus their capital on production and business, create momentum to promote economic development, and provide timely support to businesses and people through reducing financial costs and supporting liquidity and cash flow.”
The tax incentives have created motivation and confidence for businesses to quickly restore production and business activities, experience development, and promote growth.