QUANG NAM – Enterprises in Quang Nam Province have proposed the local government give them support to cope with woes.
They proposed increasing the land rent reduction ratio from 30% (applicable from 2021) to 70% for enterprises operating in the tourism industry. Another proposal includes extending the land rent, VAT, and corporate income tax reduction until the end of 2023.
According to the Quang Nam Tourism Association (QTA), such proposals, if approved, will partly help businesses overcome challenges to ensure sustainability.
Specifically, apart from armed conflicts in some areas of the world affecting travel, Vietnam’s traditional markets are not prepared to completely reopen for tourism. Some countries are still applying the “zero Covid” policy, such as China, or the quarantine policy, such as South Korea.
The visa policies are limited, can’t keep up with the post-pandemic tourism trends and are not competitive with other markets, in addition to the shortage of human resources.
Responding to these proposals, the People’s Committee of Quang Nam Province said the land rent reduction ratio of 70% in 2021 was not appropriate.
Meanwhile, as for reducing the land rent in 2022, the Ministry of Finance is coordinating with relevant agencies to develop a policy to reduce land rent and water surface rent in 2022 and will submit it to the competent authorities for consideration.
However, some tourism businesses said they had not benefited much from the current 30% income tax reduction policy because they were forced to shut down or temporarily shut down. Thus, the companies have not earned revenue to enjoy tax deductions.
As for the policy of reducing electricity prices for a period of three months, tourism businesses have hardly benefited from it as it was applied during the pandemic outbreak when businesses were shut.
With regard to the policy of lending to pay the wages of laborers who had their contracts suspended and pay wages to restore production according to Resolution 68/NQ-CP, the majority of tourism businesses have not met the above regulations as the employees who quit their jobs do not meet the requirements mentioned in the resolution.