Finance ministry suggests policies in support of pandemic-hit sectors

The Ministry of Finance has submitted proposals to authorities regarding the issuance of taxation and land lease policies to tackle difficulties and promote production and trade amid the COVID-19 pandemic.

Specifically, the ministry proposed the Government issue Decree No 44/2021/ND-CP dated March 31, 2021 guiding the inclusion of financial donations to COVID-19 prevention and control activities in the list not subject to corporate income taxes for 2020 and 2021, with an estimated cut of nearly VND170 billion (US$7.39 million) per year.

Meanwhile, Decree No 52/2021/ND-CP dated April 19, 2021 also allows the extension of tax and land lease payment deadlines this year for those hit by the pandemic, with a total amount of around VND115 trillion.

The ministry also suggested further cutting 30 types of fees and costs by 10%-50% from July 1 to the year’s end.

According to the ministry, the pandemic is taking a toll on economic sectors nationwide, especially tourism, aviation, and transportation.

It will continue to perfect mechanisms, improve the efficiency of its apparatus, step up administrative reform, and modernise the taxation and customs sectors, thus creating favourable conditions for businesses to grow.

Head of the General Department of Taxation’s Department of Tax Filing and Accounting Le Thi Duyen Hai said the finance ministry has directed the taxation sector to review the impact of tax policies on production and trade as well as State budget collections.

The taxation sector will shortly recommend feasible tax and fee measures.