VASEP says zero per cent export services tax should remain
VASEP says zero per cent export services tax should remain
The Vietnam Association of Seafood Exporters and Producers (VASEP) has called on the government to retain the existing zero per cent tax for export services, saying it plays an important role in ensuring fairness and healthy competition in the economy.
The Vietnam Association of Seafood Exporters and Producers (VASEP) says the existing zero per cent tax for export services should be maintained. — VNA/VNS Photo |
VASEP's calling came amid proposed amendments to tax laws, which could potentially see export services subjected to a 10 per cent value-added tax has been put forward.
In letters addressed to key ministries and regulatory bodies including the Ministry of Finance (MoF), Ministry of Justice (MoJ) and the General Department of Taxation, VASEP said subjecting export services to a 10 per cent tax rate deviates from international norms where many countries apply a zero per cent tax rate for such services, coupled with provisions for input tax refunds.
The association said the tax, if approved, will have detrimental impacts on export-oriented enterprises including increases in production costs, which will hurt Vietnamese businesses' ability to compete in the global market. As an economy heavily reliant on exports, it may lead to far-reaching consequences, including reduced export turnover and diminished investor confidence.
Earlier, the Vietnam Chamber of Commerce and Industry (VCCI) also called on the government to maintain the zero per cent tax for export services, over worries that tax hikes would undermine the competitiveness of Vietnamese exporters.
