The 12 th National Assembly Standing Committee opened its 42 nd session in Hanoi on July 13 to review the Government’s proposal on tax exemptions, reductions and extensions in 2011 and give opinions to the draft resolution on tariffs environmental protection.

The report on the supplementary promulgation of solutions on tax presented by Finance Minister Vu Van Ninh said the Government provided an extension on tax payment for small and medium-sized enterprises and continued to expand groups of subjects eligible to enjoy tax payment extension for labour-intensive enterprises in forestry and seafood processing, garment, footwear, electronic accessories production, socio-economic infrastructure projects and some important trading services.

Tax exemption is applied to dividends for investment in securities and shares in enterprises, for securities transfer operations and from salary, pay and business incomes.

However, Chairman of the NA Committee for Finance and Budget Phung Quoc Hien said that many opinions from his committee stressed the need to cautiously consider and review the application of tax exemptions and reductions.

Chairman of the NA Economic Committee Ha Van Hien said that although the banking sector currently has high interest rates, many businesses still need loans to maintain production. In the first six months of this year, they faced more difficulties.

At present, they are awaiting tax policies to ease their difficulties, because it is not easy to promptly reduce the banking interest rates, he explained, saying that it is necessary to promulgate policies on tax exemption to give a positive sign to the market.

The NA permanent committee agreed with the Government’s submission to the first session the 13 th National Assembly for further consideration.

Also at the meeting, the NA permanent committee gave opinions to the draft resolution on promulgation of tariffs on environmental protection.

The draft resolution is expected to be approved on July 14 by the NA permanent committee./.