Upcoming tax cut package estimated at US$2.62 billion: Finance minister

The upcoming tax cut package for businesses and people affected by the pandemic in 2022 could worth up to VND60 trillion (US$2.62 billion), nearly triple the size of a similar program this year, or VND21.6 trillion ($945 million).

Taxpayers at the Hanoi Tax Authority. Photo: The Hanoi Times.

Minister of Finance Ho Duc Phoc gave the information at a year-end meeting of the General Department of Taxation held today [December 24], noting the draft proposal has been submitted to the National Assembly for consideration.

This year, tax collection was estimated at VND1,510 trillion ($66.1 billion), exceeding the year’s estimate by 12.47%.

Ho Chi Minh City is expected to be the largest contributor to the state budget with the figure set to exceed the year’s estimate by 3% and equivalent to that of last year.

Meanwhile, Hanoi’s budget revenue could also surpass the estimate by nearly 9%, for which Phoc noted 60 out of 63 provinces/cities are on track to have higher revenue than their collection targets.

According to Phoc, the results remained positive despite the severe Covid-19 impacts, but expect the tax authorities to continue providing support for businesses and people to overcome current economic hardship.

Phoc also called for the authorities to step up efforts against tax evasion, transfer pricing and tighten tax management in potential fields of e-commerce, digital businesses, real estate, banking, and securities.

“Priority should be given to the acceleration of digital transformation in tax management, including the launch of e-invoice,” Phoc noted.

In October, the Standing Committee of the National Assembly issued a tax cut program worth VND21.6 trillion ($945 million), including a 30% cut of corporate income tax for businesses with revenue of less than VND200 billion ($8.75 million); lower personal income tax and value-added tax for individuals, business households at localities affected by the pandemic.