September 20, 2020 01:40

Advertisement Contact us RSS Vietnamese

Minister of Finance Dinh Tien Dung: Focus on 10 financial solutions to support economic recovery  

14:33 | 12/05/2020

VCN- Speaking at the Prime Minister’s meeting with businesses in 2020 held on May 9, Minister of Finance Dinh Tien Dung shared solutions deployed by the ministry over the past time to support people and businesses amid the Covid -19 pandemic and provide the immediate and long-term solutions to support economic recovery. Customs newspaper recorded this speech.

minister of finance dinh tien dung focus on 10 financial solutions to support economic recovery Finance sector is harvesting many "sweet fruits".
minister of finance dinh tien dung focus on 10 financial solutions to support economic recovery Customs sector needs to take initiative in revenue collection in 2020
minister of finance dinh tien dung focus on 10 financial solutions to support economic recovery Drastically carrying out the task of tax collection right from the first days of the year
minister of finance dinh tien dung focus on 10 financial solutions to support economic recovery
Minister Dinh Tien Dung

90,192 businesses extended payment

Following directions of the Government and the Prime Minister, the Ministry of Finance has implemented and submitted to competent authorities for the promulgation of solutions on fiscal policies to support people and businesses.

Specifically, it submitted to the Government for promulgation Decree No. 41/2020/ND-CP extending the deadline of tax payment (VAT, Personal Income Tax for business households, Corporate Income Tax) and land rent fee for most people affected by the Covid-19 pandemic. Currently, 90,192 businesses have had payments extended with an amount worth VND 26,261 billion.

The Ministry of Finance has worked with ministries and ministerial-level agencies to review and issue documents according to its competence (or submit to the Government and the PM) and issued documents on exemptions and reductions of taxes, fees and charges.

Implementing the exemption of license fees for households, individuals and groups of individuals that are individuals newly established in the first year; households, individuals and groups of individuals engaged in production and business with annual revenue of 100 million or less; implementing import tax exemption on production materials and some items for pandemic prevention.

It has implemented a deep reduction in fees and charges such as business registration fees; fees for Business Information Disclosure; fees for the evaluation and re-issuance of postal operation licenses; fees for evaluation, issuance, amendments and supplements of postal operation licenses; as well as fee reductions and exemptions for some securities services.

The Ministry of Finance has requested ministries and sectors propose circulars on exemption of fees and charges. So far, it has issued eight circulars and will issue 11 circulars in the next week.

At the beginning of May, the Ministry of Finance added 93 tax administrative procedures the National Public Service Portal to assist taxpayers in tax declaration anytime and anywhere, while also ensuring transparency of tax procedures.

Many taxes continue to be reduced and exempted

Amid difficulties due to the impact of disease, the budget balance, budget deficit and public debt in 2020 are facing great pressure.

State revenue has decreased significantly due to the impact of four main factors:  economic growth is lower than the target; crude oil has plummeted; policies have been adjusted to remove difficulties for production and business; the arrangement and equitisation of enterprises are slow.

Budget spending must be strengthened for pandemic prevention and control activities, ensuring social security and safety as well as sufficient resources for development investment expenditure to maintain the growth momentum of the economy.

Therefore, managing budget balance is a big challenge and a key but difficult task of the Government at all levels and sectors this year.

The gradual recovery of activities based on easing social distancing is also a strong impetus for the development and this is the new phase of the implementation of the double task that is continuing to combat pandemic and carryout socio-economic recovery.

To help businesses and people restore and stabilise production and business activities, and grasp development opportunities, the Ministry of Finance will focus on implementing the following 10 solutions:

Firstly, continue to closely follow tax contents that have been reported by the Government to the National Assembly and the National Assembly Standing Committee for early promulgation and effective performance immediately after being promulgated. Those are policies: Exemption and reduction of corporate income tax for small and micro enterprises; increase in family circumstance deduction level when calculating personal income tax; and continue to exempt agricultural land use tax until the end of 2025.

Secondly, the Ministry of Finance has submitted to the Government an amendment to the Export Tariff and the Preferential Import Tariff, including the proposal of tax rate  reduction for 24 commodity groups; duty exemption for all raw materials, components and supplies for manufacturing of mechanical engineering, supporting industries and automotive industries; for processing and production of export products. In addition, regulations in the draft have removed difficulties for businesses operating in footwear, textiles, processing of agricultural, forestry and fishery products.

Thirdly, soon submit to the Government the reduction of land lease fees for production and business establishments which have stopped business due to the impact of the Covid-19 pandemic.

Fourth, coordinate closely with ministries, branches and localities to review and cut fees and charges to reduce costs for businesses and people.

Fifthly, promote implementation of issued solutions for enterprises and people to quickly enjoy support in the most favorable manner, at the same time continue to closely monitor the actual situation, research, review and assess to propose appropriate solutions on taxes, fees and charges, and report to authorities for consideration.

Sixth, reduce late payment interest for manufacturing enterprises which directly import goods to create fixed assets that are imposed VAT by Customs.

Seventh, consider extending deadline for submission of certificates of origin of goods; accept C/O using digital signatures and seals or copies/scans of C/O to submit to Customs to solve difficulties for import and export enterprises.

Eighth, research and propose solutions to support the stock market.

Ninth, closely coordinate with ministries, branches and localities in disbursing public investment capital in 2020.

Tenth, continue to accelerate administrative procedure reforms towards facilitating people and businesses.

By Hong Van/Ngoc Loan