Illustrative image (Photo: baodauthau.vn) Hanoi (VNS/VNA) - The mining industry faced difficulties in thefirst eight months of this year due to being unable to enjoy tax and landrental incentives, said Nguyen Huu Quang, deputy head of the NationalAssembly's Committee on Finance and Budget.
The National Assembly and the Government have issued many policies to reducetaxes, fees, charges and land rents and extend payment deadlines tosupport amid the COVID-19 pandemic. However, the mining industry has notaccessed these incentives.
The General Statistics Office (GSO) reported the index of industrial production(IIP) for the first eight months of this year was estimated to surge by2.2 percent year-on-year, while the mining industry’s IIP reduced 7 percent.
Accordingto the amended articles of the Law on Value added Tax (VAT), exported goods,which have the total value of natural resources, mineral resources and energycost accounting for 51 percent or more of the product cost, do not enjoyreduced or refunded VAT for input materials. These goods do not also enjoyexport tax incentives under the Import - Export Tax Law.
Thesefactors are why the mining industry has had negative growth in the firsteight months, according to Quang.
The GSOsaid Vietnam’s industrial production faced more difficulties in August when thepandemic resurged in late July.
Thenational IIP in August increased by about 3.5 percent over the previous month,but decreased by 0.6 percent over the same period last year. Of which, IIPdecreased by 5.1 percent for the mining industry, 0.1 percent for theprocessing and manufacturing industry, and 0.7 percent for electricityproduction and distribution. While, that of water supply, waste and sewagemanagement and treatment increased by 2.2 percent.
TheIIP in the first eight months of this year was estimated to increase by2.2 percent year-on-year. However, it was much lower than the growthrate of 9.5 percent in the first eight months of 2019./.
The National Assembly and the Government have issued many policies to reducetaxes, fees, charges and land rents and extend payment deadlines tosupport amid the COVID-19 pandemic. However, the mining industry has notaccessed these incentives.
The General Statistics Office (GSO) reported the index of industrial production(IIP) for the first eight months of this year was estimated to surge by2.2 percent year-on-year, while the mining industry’s IIP reduced 7 percent.
Accordingto the amended articles of the Law on Value added Tax (VAT), exported goods,which have the total value of natural resources, mineral resources and energycost accounting for 51 percent or more of the product cost, do not enjoyreduced or refunded VAT for input materials. These goods do not also enjoyexport tax incentives under the Import - Export Tax Law.
Thesefactors are why the mining industry has had negative growth in the firsteight months, according to Quang.
The GSOsaid Vietnam’s industrial production faced more difficulties in August when thepandemic resurged in late July.
Thenational IIP in August increased by about 3.5 percent over the previous month,but decreased by 0.6 percent over the same period last year. Of which, IIPdecreased by 5.1 percent for the mining industry, 0.1 percent for theprocessing and manufacturing industry, and 0.7 percent for electricityproduction and distribution. While, that of water supply, waste and sewagemanagement and treatment increased by 2.2 percent.
TheIIP in the first eight months of this year was estimated to increase by2.2 percent year-on-year. However, it was much lower than the growthrate of 9.5 percent in the first eight months of 2019./.
VNA
