Ministries propose tax breaks for coronavirus-hit businesses
Ministries propose tax breaks for coronavirus-hit businesses
Several ministries have proposed that businesses are given value-added and income tax breaks, and deferment of tax payment by up to one year.
An employee sits in a closed business on Ba Trieu Street, Hanoi, April 13, 2020. Photo by VnExpress/Ngoc Thanh.
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The Ministry of Planning and Investment has proposed a 50 percent cut in income tax for small and medium businesses; and an equal cut in value added tax (VAT) for raw materials, goods and services.
It has also proposed VAT refunds for businesses in industries directly affected by the pandemic, like aviation and tourism; and for a reduction in fees related to roads, ports and airport services, as also vehicle registration.
The Finance Ministry, meanwhile, has proposed a deferment in tax payment from five months to a year. It also proposed a reduction in the environment tax on biofuel E5 RON92, which is currently at VND3,800 ($0.16) per liter.
The Ministry of Industry and Trade has proposed a reduction in pork import tax.
All these proposals have to be approved by the government and the National Assembly.
The government had earlier approved delays of up to five months for payment of VND180 trillion ($7.6 billion) worth of taxes and land use fees by businesses affected by the pandemic, effective starting April 8.
