VietNamNet Bridge - Tax relief for business support is one of the main discussions at the opening meeting of the National Assembly Standing Committee on April 9.

 

 

The 17th session of the National Assembly Standing Committee will take place from April 9 to 18 in Hanoi, discussing tax policies to support businesses.

The committee will consider the Government's tax-related solutions to support business and production and discuss different opinions regarding the amended Law on Corporate Income Tax.

In relation to this bill, the tax rates of the corporate income tax that will be applied from early 2014 have not been approved.

In the previous session of the Standing Committee of the National Assembly, the Government planed to reduce the common corporate income tax rate from 25 percent to 23 percent, particularly 20 percent for small and medium enterprises.

Meanwhile, National Assembly Chairman Nguyen Sinh Hung asked the Government to set the common rate at 20 percent for all businesses to better support and encourage investment.

Explaining why the government cannot lower the common tax rate to 20 for all enterprises, the Ministry of Finance estimates that every 1 percent reduction of corporate income tax rate, the state budget revenue will lose VND6 trillion ($300 million).

If reducing the general tax rate to 20 percent from January 1, 2014, the budget revenue will be significantly affected because at the same time, revenues from personal income taxes will also fall because the new law will be also applied.

Reducing production costs and inventories through tax policies is one of the measures the government introduced in its draft resolutions to remove difficulties for production and business.

These policies will also be presented by the Finance Ministry to the National Assembly Standing Committee this time, scheduled on April 17.

Earlier, Chairman of the Government Office Vu Duc Dam said the government also planned to report to the National Assembly some more drastic tax-related solutions to support production.

In addition to the tax policies, the National Assembly Standing Committee will also comment on the state budget settlement, the Bill on practices thrift, fighting waste in using bond funds, the Employment Law, the Land Law and the draft amendment of the 1992 Constitution.

Tran Cham