Taxation policy and poverty reductionIndirect taxes:
VAT: Imposing incentive rate of 5% on necessity goods and some agriculture products while most of other agriculture products are not taxable.
Excise tax: only imposed on luxury goods and services
Other incentives and deductions to support farmers, workers, low income taxpayers and poor people:
Exemption of tax on agriculture land use from 2003 to 2020 and irrigation fees.
Exemption of VAT, personal income tax and corporate income tax for taxpayers having house for rent to workers, students; catering services to workers and baby sitting in fiscal year 2012 if they commit to keep their service charge unchanged.
Exemption and reduction of fees and charges for children, poor households, old people, handicapped, ethnic minority people, etc.