The Ministry of Finance of Vietnam has issued Circular 44/2023/TT-BTC, which stipulates a reduction of 10% to 50% in fees and charges for 36 items, aimed at supporting individuals and businesses in difficult economic conditions, recovering from the pandemic, and international fluctuations.
The Ministry of Finance of Vietnam estimates that the reduction of these 36 fees and charges by 10% to 50% from now until the end of 2023 will decrease the state budget revenue by approximately 700 billion VND.
There are 21 fees that will be reduced by 50%, including:
- Citizen identification card issuance fee;
- License issuance and operation fee for banks;
- License issuance and operation fee for non-bank credit institutions;
- Construction organization operational capacity certificate issuance fee;
- Construction individual professional practice certificate issuance fee;
- Construction investment project appraisal fee (feasibility study report appraisal fee or economic-technical investment report appraisal fee);
- International travel service business license appraisal fee;
- Domestic travel service business license fee;
- Tourist guide card appraisal fee;
- Securities sector fees and charges, except for two specific items;
- Non-business import publication license fee;
- Import publication registration fee for business purposes;
- Industrial property ownership fee.
In addition to the 36 fees and charges that will be reduced from July to the end of 2023, the government had previously approved a decree to reduce the registration fee by 50% for domestically produced automobiles.
The reduction of various types of fees and charges is an effective fiscal policy tool in economics, demonstrating the government’s and state agencies’ efforts to restore Vietnam’s economy and stimulate economic growth by reducing financial burdens on individuals and businesses, accepting budget deficits to accelerate economic development.
Expanding fiscal policies, such as increasing expenditures or reducing taxes to boost total demand in the economy, are commonly applied when the economy experiences recession, deflation, or requires a push to achieve government objectives.
Download the full Circular here.