Many financial policies are proposed by the Ministry of Finance to stimulate aggregate consumer demand.

DNHN - In 2024, the Prime Minister instructed the Ministry of Finance to present proactive proposals to the appropriate authorities for prompt deliberation and determination regarding exemptions, reductions, and extensions of taxes, fees, and charges.

By extending, excusing, or reducing certain taxes, fees, and charges, the Ministry of Finance has continued to implement policies designed to assist individuals and organizations in overcoming obstacles throughout 2023. A newly issued circular specifies the reduction of 35 fees in total. These include medical fees, construction investment project appraisal fees, fees for securities transactions, and fees for citizen identification. From July 1, 2023, to December 31, 2023, this reduction in fees is anticipated to reduce state budget revenues by approximately VND 700 billion.

Furthermore, to ensure the economic situation's stability, the Ministry of Finance pledges to continue auditing the situation and, if required, suggest additional remedies. In addition, on October 21, 2023, the Prime Minister issued Official Dispatch No. 990/CD-TTg, which guided the execution of measures to enhance credit capital accessibility and eliminate obstacles to business operations and production. The primary objective of this communication is to facilitate the fulfillment of the state budget revenue and socio-economic development plan for the year 2023.

Pham Minh Chinh, the prime minister, has recently issued Official Telegram No. 990/CD-TTg dated October 21, 2023, to expeditiously eliminate impediments and challenges, advance resources, enhance the economy's capacity to access and absorb credit capital, and foster growth while maintaining macroeconomic stability. This is in pursuit of the highest objectives and targets outlined in the socio-economic development plan and state budget for 2023.

Subsequently, the Prime Minister instructed the Ministry of Finance to proactively put forth proposals for extension, exemption, and reduction of taxes, fees, and charges in 2024. These proposals should be duly submitted to the appropriate authorities for prompt deliberation and determination. Furthermore, drastic measures are required if the state budget revenue target for 2023 is to be surpassed by the National Assembly's estimate.

To stimulate aggregate domestic consumption demand, the Ministry of Finance has put forth financial policy proposals. To reduce taxes, fees, and charges in 2024, the Ministry of Finance has conducted research and proposed several solutions, including the following: continuing to consider a 2% value-added tax reduction and considering a reduction in the environmental protection tax rate. 2023 petrol and oil markets as they are implemented. Simultaneously, maintain an ongoing assessment and reduction of export and import tax rates to bolster domestic manufacturing and commerce and decrease the amount of fees collected...

The Ministry of Finance reported that as of October 30, 2023, 85 percent of budget revenue had been generated, which is equivalent to 1,366,000 billion VND. The Ministry of Finance will continue to implement solutions during the final months of the year, including the development of cross-border electronic information portals and tax data centers.

Furthermore, taxes are levied by the financial sector on business activities and real estate transfers. Its responsibilities include advising individuals and organizations on the accurate reporting of real estate transfer prices, enhancing management efficiency, and guaranteeing budgetary revenue.

As per the Ministry of Finance, these solutions not only assist businesses and bolster individuals' confidence, but they also amass long-overdue potential revenues, thereby guaranteeing a fund for construction investment. The infrastructure and socio-economic development budget of the nation.

PV (t/h)