Da Nang has introduced tax and fee reductions and deferrals which amounted to a total of VND 1,278 billion over the past 8 months as part of the city’s efforts to ease financial burden on local residents and businesses amidst the ongoing COVID-19 pandemic.

Da Nang’s taxes and fee cuts, extensions in the first eight months of 2022 totaled VND 1,278 billion. Picture is taken at the Trung Khoa Company Limited. Photo: M.Q

In its efforts to stabilize prices of oil and petroleum products, the National Assembly (NA) Standing Committee has issued two consecutive resolutions on environmental protection tax rates applied on gas, oil and grease.

Da Nang introduced a 50% cut to environmental protection tax levied on petrol (except for ethanol), diesel oil, Mazut fuel oil, lubricant and grease plus a 70% cut to such a tax applied on kerosene from April 1 through July 10, 2022 with the total scale of these reductions amounted VND 270 billion in line with the NA Standing Committee’s Resolution No. 18 dated March 23, 2022.

Currently, the city is continuing to introduce further tax cuts on gas, oil and grease in line with the NA Standing Committee’s Resolution dated July 6 from July 11, 2022 through December 31, 2022 with an estimated tax reduction of VND 97 billion in August. In addition, Da Nang also reduced environmental protection tax on aircraft fuels by 50% from January 1 through October 7, 2022 in an attempt to support domestic airlines and aviation-related businesses in accordance with  the NA Standing Committee’s Resolution No. 13 dated December 31, 2021 with an estimated tax reductions totalled VND 90 billion.

Da Nang continues implementing reductions and exemptions of VAT rates along with deadline extension for payment of taxes and land lease fees. In particular, tax cuts were estimated to cost VND 200 billion to support local residents and businesses over the past 8 months in line with the national government’s Decree No. 15 dated January 28, 2022 and the NA’s Resolution No. 43 dated January 11, 2022. People and businesses across Da Nang have enjoyed benefits from the VAT cut policy as the VAT rate has been reduced from 10% to 8%

The city has yielded positive outcomes after over three months of its implementation of the national government’s Decree No. 34 dated May 28, 2022 on deadline extension for payment of taxes and land lease fees. A combined total of 5,824 taxpayers has filed for such an extension with an estimate of VND 421 billion in tax extensions over the past 8 months.

The national government ‘s Decree No. 103 has cut registration fees for locally made cars by 50 percent for six months starting December 1. This policy was in effect until May 31, 2022. Da Nang’s tax cuts were estimated to cost VND 160 billion in the first 5 months of 2022 in accordance with this Decree. In addition, Da Nang reported an estimated VND 15 billion in tax reductions from January 1, 2022 to June 30, 2022 in line with the the Ministry of Finance’s Circular No. 120 dated 24 December 2021 as an effort to support those affected by COVID-19.

Reporting by MAI QUE – Translating by H.L