The Ministry of Finance has proposed the government extend the payment deadline for tax and land rental fees from March to August to help businesses overcome the ongoing difficulties.

The ministry said Vietnam’s economy and international economies have undergone complex changes since the fourth quarter of 2022. Many forecasts have been made about the risk of recession for some major economies, which will certainly have an impact on recovery in Vietnam.

Tightened monetary policies have narrowed market liquidity and rising interest rates have made it hard for businesses to gain access to credit, the ministry said.

In order to help businesses and people overcome the difficulties in 2023 and maintain production and trade while mitigating the impact on the State budget balance, it is necessary to adopt solutions on extending tax and land rental fee payment deadlines, according to the ministry.

The total amount of added value tax, corporate income tax, personal income tax, and land rental fees subject to the extension is estimated at over VND112.3 trillion ($4.69 billion).

The extension will not affect State budget collection plans for 2023, the ministry said.