The Hanoitimes - The VND29 trillion bailout package of measures announced by the Government has attracted special attention from the public.
The Government is scheduled to submit the package, described as the most diversified so far, to the National Assembly during its third session in May.
The Ministry of Finance’s proposal to reduce and defer taxes is also expected to help businesses iron out snags.
Nguyen Thi Loan from the Thang Long Construction Joint Stock Company says once the package is put into practice, companies will have more capital to invest in future business operations.
“If the corporate income tax is reduced by 30 percent, we can save up to VND550 million on two VND30 billion contracts,” she says.
She adds that a six-month deferment of the VND3 billion value-added tax for each contract will allow her company to have more money to develop its business.
Nguyen Thi Cuc, former Deputy Director of the General Department of Taxation, says the 2011 tax-related measures focused on corporate income tax will stimulate profit-making businesses.
This year’s measures will be expanded to the value-added tax, so all businesses will benefit, Cuc says, adding that this year’s package is more feasible than last year’s.
Despite the challenges facing the State budget revenue, the MoF has spared no effort in helping businesses overcome difficulties and maintain their operations, Cuc stresses.
According to Deputy Minister of Finance Vu Thi Mai, in the first four months of 2012, nearly 18,000 businesses were dissolved or temporarily stopped operating, 10 percent more than in the same period in 2011.
The timely reduction and deferment of taxes targeted towards certain groups of enterprises, most of which are small- and medium-sized ones, is aimed at boosting production and economic growth, she says.
However, many economists say tax relief and deferment is not enough to get to the root of problem, in the context of rising input costs and declining domestic demand.
Therefore, they propose delaying the upward adjustment of petrol and electricity prices and reducing loan interest rates to help them access necessary capital resources.