The National Assembly's Financial and Budget Committee is to propose cutting corporate income tax to 20 percent during 2012/2013 from the present 25.

Phung Quoc Hien, committee head, told Sai Gon Tiep Thi ( Sai Gon Marketing) newspaper that the proposed tax rate might be lower than in other regional countries.

Additionally, struggling enterprises would enjoy corporate income tax exemptions as an incentive to attract investment, Hien said, adding that while businesses had faced many challenges due to economic instability, tax revenues were expected to increase against last year.

The Ministry of Planning and Investment has predicted that tax related income would increase by 16.7 percent to 612 trillion VND (29.3 billion USD) year-on-year.

Next year, though the domestic economy would still face certain difficulties, the Government had optimistic budget expectations based on taxes derived from the real estate and mineral mining sectors, Hien said. Curbing smuggling would also contribute to funds, he noted./.