HCMC – As Covid-19 has slowed down the local economy, more drastic measures need to be worked out to stimulate manufacturing activities, including plans for tax payment extensions, tax cuts and exemptions, Prime Minister Nguyen Xuan Phuc told a meeting on July 7.
With Vietnam’s gross domestic product totaling some US$300 billion, the country will need to set aside some US$30 billion for a Covid-19 relief package, similar to practices followed in other countries. To date, the country’s financial support package has reached just VND15 trillion (US$647 million).
Vietnam is in need of effective fiscal policies to help the economy recover and leverage opportunities to soon completely contain the spread of the novel coronavirus.
The Government leader asked the Finance Ministry to introduce proposals on fiscal stimulus packages, come up with solutions to extend tax payment deadlines, lower or exempt duties and call for various sources of capital to boost socioeconomic growth.
The finance sector was told to instruct localities to adopt measures in terms of taxes and fees to support businesses and local residents. The relevant ministries, departments and agencies have to work on plans to reduce fees and charges and streamline administrative procedures and public services.
The sector has to use technology to conduct administrative procedures aimed at preventing corruption and wastefulness. Agencies in the sector have to also reduce the number of inspections.
PM Phuc asked the Finance Ministry to tackle violations with regard to prices and control the prices of fuel products, electricity, water, education and healthcare services, to maintain inflation below 4% this year.
Moreover, the ministry was also told to expedite the disbursement of public investment set at VND700 trillion or US$30 billion for this year.
