Tens of thousands of billions of tax is reduced and extended

The tax sector has implemented many policies on tax exemption, reduction and extension to support enterprises. Photo: H.Dịu

On May 28, 2022, the Government issued Decree No. 34/2022/ND-CP on extending payment of value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent.

Accordingly, by the end of September 2022, the total amount of extended VAT is estimated at about VND51,321 billion. In particular, the amount of tax paid by businesses and organizations to the state budget is about VND15,044 billion, and the remaining tax amount of extension is about VND36,277 billion.

The General Department of Taxation said that the amount of CIT arising in the first and second quarters of 2022, which is subject to extension, is about VND40,000 billion; the amount of CIT paid into the state budget by taxpayers is about VND30,000 billion; the tax amount that is still being extended is about VND10,000 billion. For business households and individuals, the amount of VAT and PIT, the extended land rent is about VND204 billion.

Also in 2022, the Government issued Decree 32/2022/ND-CP on excise tax deferral for domestically manufactured or assembled automobiles. The total amount of excise tax extended under Decree 32/2022/ND-CP is about VND6,370 billion. The policy of reducing the VAT rate from 10% to 8% for groups of goods and services as prescribed in Decree No. 15/2022/ND-CP of the Government which is implemented until September 30, 2022, is estimated to reduce state revenue by about VND16,000 billion; the reduction of the environmental protection tax rate on aviation fuel following Resolution No. 13/2021/UBTVQH15 and Resolution No. 20/2022/UBTVQH15 is estimated to reduce state revenue in the first nine months of 2022 by about VND1,180 billion.

Along with that, the Tax Department has also reduced the environmental protection tax rate by 50% for gasoline (except ethanol), diesel oil, fuel oil, lubricants and greases; reducing the environmental protection tax rate for kerosene by 70% in accordance with Resolution No. 18/2022/UBTVQH15; reduce the environmental protection tax bracket for gasoline (except ethanol), diesel oil, fuel oil, lubricating oil, grease, kerosene, and jet fuel following Resolution No. 20/2022/UBTVQH15 from July 11, 2022. These policies are estimated to reduce state revenue in the first nine months of 2022 by about VND13,920 billion.

The Tax Department has also reduced the collection of a number of fees and charges to support and remove difficulties for those affected by the Covid-19 pandemic as prescribed in Circular No. 120/2021/TT-BTC dated December 24th, 2021, which took effect from January 1, 2022 to June 30, 2022. It is estimated to reduce state revenue in the first six months of 2022 by about VND900 billion.

In addition, the tax sector is continuing to implement a number of policies to support businesses and people that were already launched in 2021, which continues to take effect in the first months of 2022. Accordingly, Resolution No. 406/NQ- UBTVQH15 was issued at the end of 2021, but due to the delay of the policy, it has reduced the revenue collection of 2022 by about VND6,453 billion.

Tax authorities at all levels have also continued to implement Decree No. 103/2021/ND-CP to reduce registration fees by 50% for domestically manufactured and assembled automobiles from December 1, 2021 to the end of May 31, 2022, reducing state revenue in the first eight months of 2022 by about VND6,554 billion.