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Sunday, June 23, 2024

MPI proposes reducing taxes amid Covid-19

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HCMC – The Ministry of Planning and Investment (MPI) has proposed reducing several taxes such as environmental protection tax, corporate income tax and value-added tax (VAT) to support individuals and businesses during the coronavirus pandemic.

The proposal will be sent to the Standing Committee of the National Assembly after it is approved by the Government, according to VnExpress.

The ministry proposed slashing corporate income tax by 50% for small- and medium-sized enterprises in 2020, VAT by 50% for input materials and services, and registration fees for locally made or assembled cars by 50% until the end of 2020.

The ministry also suggested the Government should refund VAT in 2020 for businesses in the hardest-hit sectors such as aviation and tourism. Road maintenance, sea port and aviation fees and environmental protection tax for fuel, especially E5 bio-fuel, should also be reduced.

Individuals and businesses should be allowed to delay payments of VAT, personal income tax, corporate income tax and land-use fees for one year.

Moreover, the ministry proposed reducing the import tax for pork and the import tax and environmental protection tax for aviation fuel, and extending the payment period for export taxes for five months.

Individuals and businesses affected by the coronavirus pandemic have been allowed to delay payments for land-use fees and taxes worth up to VND180 trillion in total since April 8. According to the Ministry of Finance, 98% of businesses in Vietnam are eligible for this policy.

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