The Vietnamese government is considering to break taxes for local companies, delay the personal income tax until July 1 next year and to further cut benchmark rate to 10 per cent as parts of efforts to boost exports and investments to stimulate growth amid the global economic recession, state media said, citing Prime Minister Nguyen Tan Dung.
At the meeting chaired by PM Dung Nov 27, cabinet members proposed slashing corporate income tax to 25 per cent, cutting 30 per cent of tax for small and medium companies, delaying the personal income tax including 20 per cent capital gain tax until July 1 of 2009, and further cutting benchmark rate to 10 per cent, the mouthpiece of the Communist Part of Vietnam highlighted.
Mr Dung pointed out engines of the world economy such as the U.S., Japan…falling into recession, which will directly impact Vietnam’s economy. Signs of downturn are clear, and Mr Dung put forward a package of measures to boost exports, investments and consumption.
“The government will prioritize to stimulate investments, including boosting disbursements of g-bonds investments for infrastructure, education…developments, boost consumption, domestic production and exports by adopting flexible monetary and fiscal policies,” Mr Dung said.
State-owned corporations accounting for 40 per cent of Vietnam’s GDP value are requested to stimulate production and expand exports markets.
The Ministry of Finance and the State Bank of Vietnam are asked to apply zero percent interest rates of loans for Northern Food Corp and Southern Food Corp within 3 months to buy up 1 million tons of rice in stock in Mekong Delta region.
A package of five measures is as follows:
--boosting domestic production and exports;
--stimulating investments and consumption;
--taking flexible monetary policies to create favorable conditions for local companies to push up production;
--ensuring social welfares, particularly for remote and disadvantaged, flood-stricken areas;
--streamlining procedures for infrastructure and construction fields, capital access, tax payments and arrears. (chinhphu.vn, The People Nov 28 p1, Vietnam News Agency Nov 28)
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