Film companies want VAT cut, not an increase
Film companies want VAT cut, not an increase
Businesses in the film sector have proposed a reduction in the value added tax (VAT) from current five per cent to three per cent in order to boost the industry.
A cinema in Hà Nội. Businesses in the film industry have proposed a reduction in the value added tax (VAT) from the current 5 per cent to 3 per cent in order to promote the development of the industry. — VNA/VNS Photo Tuấn Đức |
Dozens of them have sent a document to the National Assembly (NA) and the Government with regard to the proposed upwards adjustment of VAT to 10 per cent in the draft amended Law on VAT, which is being discussed at the NA.
Under the draft, the VAT rate on cinema services will double from the current five per cent to ten.
Stakeholders in the firm industry said that the proposal is unreasonable, particularly as Việt Nam is aiming to nurture and advance cinema in Việt Nam, one that is both modern and distinctly rooted in national identity.
A reasonable mechanism is critical for the firm industry to develop and play its role in contributing to developing an advanced culture that is rich in national identity, they write.
The VAT increase is also unhelpful in the context that the film industry was one among sectors that were heavily affected by the COVID-19 pandemic and that it has only just recently started to recover and is still not at pre-pandemic levels.
Changes in the consumer habits after the pandemic and decreases in purchasing power are also weighing on film businesses.
“The VAT increase will not only create a financial burden on the film business but also take away opportunities to overcome the difficult time, especially in the context that the purchasing power is low,” they said.
There should be ground for any tax adjustments, film businesses said, proposing a reduction to 3 per cent in VAT for film services.
