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Vietnam mulls tax support extension for businesses

30 Jan 2023, 16:18 GMT+10

HANOI, Jan. 30 (Xinhua) -- Vietnam is mulling extending tax support policies throughout 2023 as part of an effort to support businesses, local media reported on Monday.

Businesses, household businesses and individuals were to continue to enjoy a 30-percent cut in land-use fees in 2023, on top of an extension on their tax cut despite shortfalls in state budget collection, local newspaper Vietnam News reported.

The proposal to extend land use tax reduction was made by the finance ministry as companies in land-intensive sectors like real estate, agriculture, mining are encountering difficulties triggered by credit crunch and slowed demand, according to a recent report by the online government news website baochinhphu.

A series of measures including value-added tax cuts from 10 percent to 8 percent and reduction of land-use fees, worth a total of 233 trillion Vietnamese dong (nearly 9.9 billion U.S. dollars), were implemented last year in order to boost economic recovery post-pandemic, according to the report.

Key priorities for the central government this year include speeding up the disbursement of public investment projects, injecting cash into the economy and helping improve businesses' performance, newspaper Vietnam News reported, citing Minister of Finance Ho Duc Phoc.

Economists have voiced concerns about the country's economic prospects in 2023, saying the country will likely experience a short period of low growth, inflation and increased risks to its financial system, the newspaper said.

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