NA chairman proposes lower cooperate income tax
National Assembly Chairman Nguyen Sinh Hung suggested the Government reduce small and medium enterprises’ income tax to 20 percent.
At the 16th session of the National Assembly’s Standing Committee on March 18, Hung said that the reduction will help enterprises accumulate capital to feed production and strengthen operation.
However, Deputy Finance Minister Nguyen Thi Mai argued reducing the cooperate income tax to below 23 percent will create difficulties for the State Budget, particularly given cuts in the private income tax that will take effect in July.
Many deputies agreed with a proposal to create more preferential tax policies for micro-finance enterprises working in agriculture, aquaculture and forestry, as well as salt production and agricultural cooperatives.
Chairman Hung suggested that those operating in difficult situation such as off-shore fishing businesses and science and technology enterprises serving farmers in remote and mountainous areas should enjoy exemptions from the current tax rate of 10 percent.
The Ordinance on Foreign Remittance adopted by the Standing Committee permits individuals to borrow capital to pay their foreign debts.
While lawmakers agreed that the move will help attract foreign exchange for economic development, the NA Economic Committee report said that any bank defaults will negatively influence the country’s confidence index.
The ordinance also allowed foreigners to open accounts and conduct transactions in Vietnam Dong at credit agencies permitted by the State Bank of Vietnam, in an effort to encourage foreign investors indirectly to invest the country.
The right to use foreign currency would not be limited with a view to facilitating individuals as well as economic organisations’ trading, said Nguyen Van Giau, Chairman of the NA Committee for Economic Affairs.
Deputies agreed that the Government should map out a roadmap for dollarization prevention following the Party’s resolutions.
During the five-day session, deputies will also discuss many other bills such as firefighting and prevention, residence and waste management.
The committee will also discuss the assembly’s planned structural reform and prepare to hold votes of confidence on persons holding positions elected or approved by the NA or People’s Councils.
Deputies will also question Chief Judge of the People’s Supreme Court Nguyen Hoa Binh and Minister of Education and Training Pham Vu Luan on issues relating to the ministry and sector’s management responsibilities.