Vietnamplus

The Government’s policy of a five-month extension for tax payment deadlines did not attract a large number of firms.

The Ministry of Finance will consider a value-added tax (VAT) rate of 5 percent on fertiliser products which are now free of VAT in response to domestic producers’ claim that the zero VAT policy made it harder for them to compete.

The Government’s decision to offer a zero-import tax rate on automobile components opens significant opportunities for the local industry to lower prices, enhance competitiveness and promote consumption.

The Ministry of Planning and Investment has asked for corporate income tax (CIT) to be cut for small and medium-sized enterprises (SMEs) by half this year in an effort to boost growth when the COVID-19 pandemic eases.

The Government has submitted a proposal to the National Assembly to extend the agricultural land tax exemption policy to the end of 2025 to support farmers and encourage the development of agriculture.

About 16,000 businesses are not included in the Ministry of Finance’s support package on tax and land rent, according to economic experts.

Hanoi aims to reduce the use of plastic bags in the traditional markets, supermarkets and trade centres to protect the environment as well as ensure the sustainability of the ecosystem.

Importing used cars with nine seats and less will become harder if a proposal to raise used car tariffs is approved by the Government.

The Ministry of Finance (MoF) has introduced a draft of amendments to laws on Value Added Tax, Special Consumption Tax, Corporate Income Tax, Personal Income Tax and Natural Resources Protection Tax.

The Ministry of Finance has proposed that the Government apply a special consumption tax on pickups to be set at 60 percent of the tax on cars with nine seats or less with similar engine displacement, a move that would sharply increase their costs.

When a bill on amendments and supplements to the Law on Environmental Protection Tax is approved by the National Assembly, environmental protection taxes on HCFC (hydro-choloro-flouro-carbon) solution and plastic bags might be raised because these products have critical impacts on the environment, said a finance official.

The finance ministry has announced that people who own a house will not have to pay tax for the second house they buy in 2017.

The Government will submit a tax reduction plan to the National Assembly this month, which aims to meet a target of increasing the number of efficient enterprises nationwide to one million by 2020.

Entrepreneurs are hailing a national plan to reduce corporate income tax for small- and medium-sized enterprises from 20 percent to 17 percent starting next year.

The formation of the AEC has opened up a wider market for Vietnamese enterprises to trade goods, attract investment and participate more deeply in the regional production and supply chains.

A number of types of automobiles will see prices drop by up to 42 percent by 2019 as a result of lower import and special consumption taxes.

The Government wants to raise the special consumption tax on vehicles with high engine displacement, according to a statement it delivered to the National Assembly recently.

The Ministry of Finance has proposed to the National Assembly waiving nearly 9 trillion VND (409 million USD) of fines on enterprises for late tax payments.