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.