Bailout package under consideration
15:15 | 03/05/2012

VGP – The Ministry of Finance has submitted to the Government a plan on tax exemption and reduction with total value of VND 25,000 billion to bail businesses out following its evaluation of the health of the economy.

The bailout plan includes solutions to help ease difficulties against businesses like corporate tax reduction and extension of payment of value-added tax (VAT).

Specifically, the Ministry proposed lowering corporate tax by 30 percent in 2012 for small and medium-sized enterprises or labor-intensive ones operating in the fields of agriculture, forestry, aquaculture, garment and textile among others.

It also put forth the extension of VAT payment in April, May, and June for the aforesaid enterprises. The volume of extended VAT is estimated at VND 4,000 billion per month-the meaningful figure for businesses.

The Ministry of Finance proposed lowering land lease fees by 50 percent for businesses operating in the fields of tourism, services, trade.

Mr. Ngo Huu Loi– Head of the Ministry’s Tax Policy Department said tax exemption and reduction is a must in the current context

However, Ms. Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consultants Association said input does not only consist of capital. Businesses are now exhausted, thus it needs a series of packages to address the issue.

By Hai Minh

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