NA Standing Committee agrees to reduce value added tax by 2 per cent

June 14, 2024 - 08:21
Members of the NA Standing Committee basically agreed with the Government's proposal to continue reducing the VAT rate by two per cent for goods and services, which are applying a 10-per-cent VAT rate in the last six months of this year.
National Assembly Deputy Chairman Nguyễn Đức Hải (standing) chairs the session on Thursday. — VNA/VNS Photo An Đăng

HÀ NỘI — The National Assembly (NA) Standing Committee discussed the draft Resolution on value added tax (VAT) reduction during its session on Thursday morning.

Members of the NA Standing Committee basically agreed with the Government's proposal to extend the reduction of the VAT rate by two per cent for goods and services through the last six months of this year. The VAT rate, normally 10 per cent, was reduced to 8 per cent last year through June 30.

They said that the VAT reduction of two per cent was appropriate for the current economic context.

NA Deputy Chairwoman Nguyễn Thị Thanh emphasised that the economy is in the recovery process and still faces many difficulties, so the VAT reduction would motivate consumers to spend, creating space for production and business rehabilitation.

It would also create a driving force for enterprises to invest in production and development, thereby contributing to the State budget as well as the economy.

NA Deputy Chairman Nguyễn Khắc Định said that this is a new addition to the Law and Ordinance Building Programme this year, so the issue that needs to be considered is whether to submit a proposal and a verification report to the NA or not.

Chairman of the NA Trần Thanh Mẫn said that during the discussion session on the socio-economic situation and the State budget, the deputies were of the same mind to continue reducing VAT by two per cent in the last six months of the year.

The NA Chairman asked the Government to complete the proposal and the Committee of Finance and Budget to complete the verification report to send to the NA delegates.

The NA General Secretary will issue an official dispatch requesting the delegates to discuss the proposal and verification report in groups, then synthesise and insert the content in the NA’s general resolution.

Concluding the discussion, NA Deputy Chairman Nguyễn Đức Hải said that the NA Standing Committee agreed to submit documents to the NA for consideration and a decision on the VAT reduction following the Government's proposal.

The NA Standing Committee suggested the Government ensure goals are set to avoid difficulties and obstacles during the implementation process.

According to the NA's resolution, the government is responsible for conducting State budget collection tasks without affecting the revenue and overspending estimates for this year.

It must guarantee revenue sources for estimated expenditure tasks as well as urgent requirements that arise.

The Government should urgently complete the draft resolution to send to the NA and verification agencies.

The Committee of Finance and Budget will officially check, clearly state its views and submit to the NA at an appropriate time arranged by the NA Office.

Weapons management

Also, in this session, the NA Standing Committee commented on the draft amended Law on the Management and Use of Weapons, Explosives, and Supporting Tools.

Members of the NA Standing Committee proposed to develop specific articles on the management and use of highly lethal knives.

Following comments from the NA deputies at the seventh session, lawmakers added the regulation of 'highly lethal knives' to the draft amended law in order to strengthen management and create a legal basis for preventing illegal knife-related activities.

The NA’s Committee for National Defence and Security proposed three levels of administrative violations for enforcing the knife law.

Chairman of the committee Lê Tấn Tới stated that if highly lethal knives are used for production and daily activities, they are not considered weapons but must be strictly controlled.

If they are used to commit a crime that causes public disorder or in opposition to organisations and individuals performing public duties, they will be defined as rudimentary weapons.

If used to threaten people’s lives or health, they are considered military weapons. — VNS