Assembly committee backs tax cuts

Assembly committee backs tax cuts

The National Assembly's Finance and Budget Committee concurred with the Government's latest tax cut proposal but said no to a tax exemption plan.

During the committee's plenary meeting on Thursday, members reviewed Government Resolution No. 13/NQ-CP which was issued on May 10, outlining measures to help businesses overcome difficulties this year.

All members agreed on the proposal to reduce corporate income tax for small and medium enterprises (except those involved in real estate, securities, finance, banking, insurance or selling special consumption tax goods and services) and labour intensive enterprises involved in the manufacturing and processing of agriculture, forestry and aquatic products, textiles and garments, leather and footwear, electronic components, and construction of certain infrastructure projects.

However, they rejected a proposal to exempt firms from VAT, personal income tax and corporate income tax for individuals and businesses that provided accommodation for workers and students and those that provided childcare services or meals for workers on the condition that they would have to maintain service costs at the same level as the end of 2011.

The committee argued that the National Assembly had issued Resolution 08/2011/QH13 last August which sought to reduce by half the relevant taxes for the above groups, but the results of the resolution had not been thoroughly reviewed to provide solid evidence on whether to put into place another preferential taxation policy.

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