Vietnam's finance ministry proposes extending taxes and fees cut until mid-2022
Vietnam's finance ministry proposes extending taxes and fees cut until mid-2022
The Covid-19 pandemic is expected to remain complicated in 2022, given the risk of new variants with higher transmissibility representing bigger danger.
The Ministry of Finance (MoF) has proposed extending the ongoing Government’s supporting programs in the form of tax and fee cuts from 2021 until June 2022.
A garment factory in Dong Anh District, Hanoi. Photo: Chien Cong |
In addition, the MoF also suggested Government agencies consider further reduction of other fees to support people and businesses affected by the pandemic.
Deputy Prime Minister Nguyen Minh Khai in his conclusion on November 15 noted the Government agreed with the MoF proposal and is instructing other ministries to adjust fees and taxes under their jurisdiction.
Khai urged Government agencies to adopt simplified procedures for businesses and people in proceeding with the taxes and fees cut.
The MoF in its report expected the Covid-19 pandemic to remain complicated in 2022, given the risk of new variants with higher transmissibility representing bigger danger.
In 2020, the ministry first launched support programs to cut fees and taxes by 20-50% in the fields of securities, construction, banking, and industry. The programs were later extended until the end of 2021, resulting in a foregone total of VND3 trillion (US$131.7 million) in state budget revenue in the 2020-2021 period.
The National Assembly in late October issued a resolution on measures to support businesses and people affected by the pandemic, including a 30% cut in corporate income tax for taxpayers with revenue in 2021 below VND200 billion (US$8.8 million) and lower than the figure recorded in 2019.
The NA also decided to waive personal income tax, value-added tax, and other expenses payable by business households and individuals in the third and fourth quarters at localities facing the Covid-19 outbreaks in 2021.
Meanwhile, the Government is expected to waive value-added tax from November 1, 2021, to December 31, 2021, for transportation services, entertainment, and cultural services, production of goods and products except for online services and products.
In line with the move, no penalties would be applied for tax and land rental fees in default during the 2020-2021 period.
To date, total support programs provided by the Government to individuals and businesses affected by the Covid-19 pandemic this year are estimated at around US$10.45 billion, or 2.85% of the GDP.
