An assistance package targeting local
businesses at an unprecedented scale encompassing diverse solutions from tax
reduction to exemption was officially unveiled at a government press meeting
yesterday.
The
package, worth a whopping sum of VND29 trillion, or $1.39 billion, include
delaying or cutting corporate income tax (CIT); deferring value-added tax
(VAT); exempting excise tax, and slashing land leasing fee for certain type of
businesses.
Over
the first four months of this year, 17,735 businesses have been dissolved or
ceased operations, a 9.5 per cent year on year increase, according to figures
from the Ministry of Planning and Investment.
Of
these, firms based in Ho Chi Minh City number more than 5,800, while the figure
is over 3,500 for Hanoi.
Most of
the dissolved companies operated in construction (3,100 firms), manufacturing
and processing (2,900), and real estate sectors (247).
“Businesses’
VAT from April to June will enjoy a six-month deferral, with the total tax
saved amounting to VND12.3 trillion,” said Deputy Minister of Finance Vu Thi
Mai at the meeting, adding companies can also save VND3.5 trillion thanks to
the CIT delay.
“The
government will also seek the National Assembly’s approval to reduce CIT by 30
per cent,” she added.
Meanwhile,
the road maintenance fee collection is also delayed until next January instead
of this June as earlier planned.
No aid to exporters
However,
many firms still express concern about the assistance solutions.
“It
will do nothing to small- and medium-sized enterprises when CIT is slashed by
30 per cent since they have no profits to pay the tax,” said Vo Quoc Thang,
deputy chairman of the Vietnam Building Ceramic Association.
“What
businesses really need is accessibility to bank loans.
“We should
do something to prevent banks from rejecting loan applications with their
various excuses.”
Meanwhile,
Huynh Van Minh, chairman of the HCMC Business Association, expressed concern
that the government does not specify the term of the 50-per cent cut on land
leasing fees.
“As for
the VAT deferral, I think it’d be better to exempt or cut this tax because
deferral only helps firms delay their tax clearance.
“They
will have to pay the tax, after all.”
For his
part, Dang Quoc Hung, deputy chairman of the HCMC Handicraft and Wood Industry
Association, complained that the package only targets local manufacturing
businesses, not exporters.
“It’s a
shortcoming of the package, and a disadvantage to exporters as they are not
subject to any supporting solutions,” he said.
Tuoi
Tre
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment