The Government has offered tax breaks worth VND50.2 trillion (US$2.13 billion) for businesses and individuals in 2022, equivalent to 78.4% of the amount estimated under the socioeconomic recovery support program for the year, according to the Ministry of Finance (MoF).

Electronics production at Dien Quang Company. File photo

Under the program, the MoF cut the value-added tax rate from 10% to 8% for goods and services, resulting in forsaking revenue of VND38.9 trillion ($1.65 billion) of the state budget; 50% cut in registration fees for cars and motorized vehicles produced locally worth VND6.6 trillion ($281 million); and 50% reduction of environmental protection tax on jet fuel worth VND2.1 trillion ($89.4 million).

In addition, the authorities extended the deadline for payment of taxes and land lease fees amounting to VND106 trillion  (US$4.5 billion) for local enterprises, cooperatives, and households, accounting for 78.5% of the total amount, or VND135 trillion  (US$5.74 billion). Of the total, the tax relief on value-added tax, corporate income tax, and personal income tax, as well as land lease fees, amounted to VND96.3 trillion (US$4.1 billion), while the amount of excise tax relief on locally produced and assembled automobiles was VND9.6 trillion (US$409 million).

The MoF noted the ministry is currently drafting a proposal for further tax cuts for businesses and people affected by the Covid-19 pandemic in 2022, estimated at VND3.5 trillion ($149 million).

Facing a sharp rise in prices of petroleum products during early 2022, the Government decided to cut the environmental protection tax on petrol and fuel worth VND30.7 trillion ($1.3 billion).

In 2022, the MoF also allocated VND4.3 trillion ($183.1 million) to subsidize housing rental fees for workers in 31 provinces/cities.