Ministry proposes support for businesses extended to 2023

The Ministry of Finance has proposed the government continue implementing fiscal and tax policies in support of people and businesses in 2023 as it did last year, said Deputy Minister Nguyen Duc Chi.

Chi told local media following the first regular cabinet meeting of the year on Tuesday that the government has offered tax and fee reductions and exemptions to support businesses and people since the Covid-19 outbreak.

In 2022, it reduced value added tax from 10% to 8% for most items, land-related levies and environmental protection tax on gasoline; while extending the payment deadlines for a number of taxes to support liquidity and cash flow for the economy.

The fiscal, tax support package in 2022 reached VND233 trillion ($9.9 billion) - the largest ever so far, helping businesses and people to increase their resilience and recovery.

Regarding the plan for 2023, the deputy minister said that the Vietnamese economy is forecast to continue facing many challenges, so right from the last months of 2022, the finance ministry has prepared, studied and proposed to the government a series of solutions related to fiscal and tax policies to continue supporting people and businesses.

Notably, the ministry proposed to continue extending payment deadlines for some taxes so that businesses and people have cash flow for production and business.

The continued reductions of land-related levies and environmental protection tax on gasoline have also been proposed, he said, adding that the National Assembly Standing Committee had issued a resolution on reducing environmental protection tax on gasoline in 2023.

"The government’s viewpoint is to continue support policies for people and businesses in 2023 through tax exemptions and reductions and other fiscal policies. It is ready for other scenarios, depending on this year’s developments,” according to Chi.

The government will also flexibly operate the monetary policy to ensure macro stability and continue the development momentum for the economy, said the deputy minister.