Proposal to increase tax exemption and reduction periods for businesses

Discussing how to support businesses after the epidemic at a recent event, Mr. Nguyen Dinh Cung, former Director of the Central Institute for Economic Management Research (CIEM), said he did not like the phrase `rescue businesses`.

According to him, supporting businesses if only for a few months is too little.

Mr. Nguyen Dinh Cung, former Director of CIEM at the event on June 9.

The Vietnam Chamber of Commerce and Industry (VCCI) and Real Estate Association (VNREA) recently also proposed to increase the tax exemption and extension support period to 12 months, and at the same time proposed to reduce land rent in 2020 and

The argument given by VCCI is that many businesses currently have to stop production and reduce labor, so they do not generate revenue and taxes.

VNREA analyses that the procedure to implement a project takes about 5 years, from construction to being qualified for sales also takes nearly a year.

Assessing recent support policies, Mr. Nguyen Dinh Cung said that the policy orientation is reasonable but the implementation stage still has many problems.

`The majority of current support policies are still at the direction stage. Many people even joke that they can enjoy the Government’s support policies on television,` Mr. Cung commented.

The level of support, including all existing, hoped for and still waiting policies, is also assessed by this expert as too small compared to the level of damage to businesses and compared to the level of support from the government.

With limited resources, Mr. Cung believes that support should be redistributed and focused on industries directly affected by Covid-19 such as aviation and tourism.

According to the General Statistics Office, the number of newly established businesses in the first 4 months of the year decreased for the first time in 5 years, to more than 37,500 businesses, a decrease of 13%.

VCCI previously surveyed that nearly 85% of businesses lost or had their product consumption markets narrowed in March-April, nearly 60% of businesses lacked capital or business cash flow, 45% ​​of businesses lacked capital or business cash flow.

Although economic indicators recovered in May, mostly only increased from the lows in April – the period of social distancing.