Total financial support from the government for people and businesses in 2023 to help them overcome the difficulties and challenges is estimated at VND198.4 trillion ($8.37 billion), according to the Ministry of Finance (MoF).

The amount includes both issued policies and policies that have been or will be proposed by the MoF.

The ministry said the global and domestic situation is becoming more complex amid widespread difficulties affecting economies, people’s lives, and production and trade. To help people and businesses cope, the MoF has proactively built many economic growth scenarios and proposed solutions to reduce and extend tax and land rents this year.

Reductions of environmental protection taxes for fuels are estimated at VND38 trillion ($1.6 billion) and extensions to payment deadlines for added value taxes, corporate income taxes, personal income tax, and land rental fees will total around VND110 trillion ($4.64 billion).

The ministry plans to submit to the Prime Minister for approval a reduction of 30 per cent on land and water surface rental fees for 2023 worth a total of VND3.5 trillion ($147 million).

In order to boost consumption, production, and economic development, the MoF has proposed a cut of 2 per cent on all goods and services subject to the existing 10 per cent VAT rate. This policy will support people and businesses by around VND35 trillion ($1.47 billion).

It is also coordinating with relevant agencies to study and submit a proposal to the government to issue a decree on extending special consumption tax payment deadlines for domestically-assembled automobiles. The extension is estimated to cost VND11.2 trillion ($472 million).