Hanoi (VNS / VNA) – While the COVID-19 pandemic has severely affected the implementation of Vietnam’s economic development plans, the National Assembly (NA) and the government have proactively and urgently rolled out stimulus packages to quickly restore the economy and capitalize on growth.
The latest resolution 406 / NQ-UBTVQH15, released by the National Assembly on October 19, is considered correct and timely policy, and has been well received by business.
The resolution offers support to businesses and individuals affected by COVID-19[female[feminine through tax cuts totaling up to VND 21.3 trillion (USD 926 million). Beneficiaries will benefit from direct tax cuts, which is considered more practical than extending tax payments in previous support programs.
Hanoi has more than 300,000 businesses, 98% of which are small and medium-sized (SMEs), which have been hit hardest by the pandemic. Tax cuts are expected to help many companies escape bankruptcy and resume production and business activities.
Mac Quoc Anh, vice president and general secretary of the Association of Small and Medium Enterprises of Hanoi (Hanoism), said that Resolution No. 406 extends its reach to more beneficiaries and the deadline for tax cuts is also longer.
“The fourth wave seriously affected the trading results of companies in the third quarter; thus, this resolution provides very practical support, helping them save more money to restore production and business activities in the last quarter of the year, ”Anh told Vietnam News.
In addition, as companies form supply chains in the economy, lower taxes mean that input costs for the economy as a whole will decrease, creating favorable conditions for lowering product prices and increase the competitiveness of enterprises, said Anh.
Resolution No. 406 proposes a 30% reduction in corporation tax for companies whose turnover in 2021 is less than VND 200 billion (USD 8.7 million) and experiences a decrease in turnover. business compared to 2019.
It has also agreed to exempt personal income tax, value added tax and other taxes in the third and fourth quarters of 2021 for individuals and households in areas affected by the pandemic. .
Value Added Tax (VAT) for goods and services including transport, food, accommodation services and those related to tourism promotion will also be reduced from November 1 to December 31 of this year. In addition, no fees are applied for late payments occurring in 2020 and 2021 for businesses and organizations with losses in 2020.
Hoang Van Phu, director of Hanoi-based Hoang Phu Transport Co, said the new resolution could save his company more than VND 300 million.
He said with the pandemic being gradually brought under control, many provinces and cities have allowed interprovincial transportation and transportation companies plan to operate at full capacity to make up for lost sales in the past three months.
“From now on, we want to be guided on the steps to apply quickly. tax cuts so that the money can start to flow into the business, ”said Phu.
According to experts, the urgency is now to organize and implement policy so that state support measures reach businesses and individuals as quickly as possible.
“What companies are striving for now is quick implementation with simpler and more relaxed conditions,” said Mac Quoc Anh.
“In addition, businesses are hoping that the tax cut deadline is extended until the end of 2022 so that they have more time to recover and grow,” Anh added, noting that four coronavirus outbreaks have occurred. produced very close to each other and that companies did not have time to recover.
According to him, companies are now trying to maintain production and they need 1 to 3 years to recover in the medium term before they start to grow and expand.
Cao Tri Dung, chairman of Da Nang Tourism Association, also said that in the current difficult times, all state support policies are highly appreciated, but companies still hope that support policies could be extended.
Dung said Da Nang city was set to gradually reopen tourism and service activities in November and December – not long enough to attract many visitors. Therefore, the tax cut of the past two months does not really make sense for businesses. The tourism business community in the central coastal city has offered to extend the support period until at least June 2022, when tourism activities are expected to resume.
Experts agreed to best help businesses, many other policies must be implemented at the same time, such as reducing VAT for longer or facilitating access to capital.
Since the beginning of this year, the government has issued 154 resolutions, 83 decrees and 31 decisions as well as numerous directives and circulars to help people and businesses overcome difficulties, soon stabilize their lives and restore and develop the socio-economy. .
Including resolution 406, state financial support to businesses and individuals in the form of taxes, royalties, land rents and interest rates has reached around 138 trillion dong this year.
The government is expected to issue a decree shortly to guide the implementation of the resolution on the principle of creating favorable conditions to help people and businesses overcome the pandemic.
Meanwhile, banks have said they will continue to reduce interest rates on existing loans, minimize lending and debt repayment procedures in line with the pandemic situation so that businesses can more easily access the market. capital./.