Vietnam Govt to Break US$1.176B Taxes to Stimulate Economy This Year

The Vietnamese government will accept various tax concessions worth up to VND20 trillion (US$1.176 billion) to spur the economy this year, the Ministry of Industry and Trade said on its Website, citing the General Taxation Department.

 

The department estimated that local companies will enjoy corporate income tax breaks worth up to VND9.9 trillion, have value added tax cuts estimated at VND1 trillion for goods sold in domestic markets, and VAT cuts valued at VND1 trillion for imports.

 

The government will delay collection of personal income tax worth up to VND2 trillion this year.

 

It will also cut by 30 per cent the coporate income tax payable for the fourth quarter of 2008 and full-year of 2009, the department said.

 

It is implementing stimulus packages worth VND145 trillion, or 9 per cent of the country’s GDP, to boost the economy, state media said.

 

The government of Vietnam has lowered its predicted GDP growth to 5 per cent from the earlier set target of 6.5 per cent, and it will tame inflation to 6 per cent-7 per cent and curb the state budget deficit to 8 per cent of the country’s GDP this year, state media said. (MOIT, VietnamNet)