New tax policies have actively contributed to cost reduction, price reduction, and consumer demand stimulation. Photo: TL

Meet the expectations of businesses

With over 5,000 employees, Dat Cau Garment Company in Bac Ninh is experiencing a slowdown in production due to fewer export orders. "Business challenges have been somewhat lessened by Government tax support. We are attempting to stabilize both production and employee lives. Therefore, the support of the Government, the State, and each tax remission policy will have a significant impact on our production and business activities, said Luong Van Thu, General Director of Dat Cau Garment Company in Bac Ninh, in a statement to the press.

Lan Chi Investment and Service Co., Ltd (Hanoi) receives tax relief of up to 20 billion VND albeit paying nearly 100 billion VND in taxes last year. Ms. Trinh Thuy Linh, Financial Director of Lan Chi Investment and Service Co., Ltd., stated that during this difficult period, the Government issued Decree No. 12/2023N-CP extending the deadline for paying value-added tax, corporate income tax, personal income tax, and land rent in 2023 to assist businesses in saving bank loans.

“With this policy, we will have more capital to reinvest in production and business, creating more jobs for workers. We do hope that the policy will be shortly implemented so that our businesses can benefit from it," said Ms. Thuy Linh.

According to Dr. To Hoai Nam, Permanent Vice Chairman and General Secretary of the Vietnam Association of Small and Medium Enterprises, tax extension and remission policies have supported businesses to overcome cash flow difficulties caused by temporary unpaid taxes, while helping businesses develop production and business activities, and promoting economic growth. Current tax policies have contributed to reducing costs for businesses, lowering product prices, and stimulating domestic consumption, all of which benefit citizens.

Require long-term policies to support businesses

A series of policies on the reduction and extension of taxes, fees, charges, and land rents that have been implemented over the past three years is a great effort of the Ministry of Finance. Minister of Finance Ho Duc Phoc has referred to this phrase numerous times in recent speeches. Those efforts have been genuine given the economy's challenges from the end of last year to the early months of this year. As a result of the decline in import and export, businesses' inability to generate orders, and a lack of capital, economic growth has experienced a slowdown, directly impacting budget revenues.

In the past 3 years, the financial support package of more than 500 trillion VND is such a huge amount. Many policies will be implemented in 2023 to create a stronger impulse, assisting the economy to rebound.

However, State budget revenue decreased in recent months. Domestic revenue fell compared to the same period last year, with declines occurring in a variety of industries and fields across the country. What is more worrying is that in the upcoming time, tax remission policies issued on a large scale will affect the progress of budget revenue.

However, the Finance sector's head stated in a press interview that he still has great determination and confidence when it comes to running fiscal policy to support the economy, individuals, and businesses while striving to achieve the goals set out in the Finance sector's year.

From the perspective of the researcher, Bui Quang Tuan, Director of the Vietnam Institute of Economics, demonstrated that businesses and workers are the direct agents creating material wealth for society, and primarily contributing to the economic growth rebound. The post-pandemic economy will recover if businesses recover. As a result, supporting policies directly related to businesses, as well as creating a favorable environment for production and business enterprises, are critical. Therefore, the Recovery Program has launched extremely powerful leverage just when the business needs it the most.

Many National Assembly deputies praised the fiscal policy to support socio-economic recovery and development during a recent discussion on the socio-economic situation in the National Assembly. However, some argued that to foster growth, it is necessary to synchronize monetary policy with fiscal policy and other macro policies, rather than relying solely on one policy. Fiscal policy has recently launched numerous policies with resources that are very expensive, effective, and operational. However, some policies that are still hesitant and unclear will also lessen the effectiveness of the extensive program that the National Assembly and Government are determined to implement./.