Ho Chi Minh City requests tax reduction

Tuoi Tre
Updated : Sun, April 17, 2011,11:10 AM (GMT+0700)

Ho Chi Minh City’s People’s Committee has asked the Ministry of Finance to reduce corporate tax by at least 30percent for small-and-middle-size businesses that are suffering from financial hardships.
Ho Chi Minh City’s People’s Committee has asked the Ministry of Finance to reduce corporate tax by at least 30 percent for small-and-middle-size businesses as part of an effort to help businesses cope with rising prices.
Nguyen Thi Hong, Vice Chair of the HCMC People’s Committee said the finance ministry’s plan to postpone tax filing for small and middle size businesses for one year was commendable but not enough.
HCMC thus was proposing additional measures to help businesses who are facing a shortage of capital as interest rates across the board are rising, Hong said.
For instance, HCMC suggested that the ministry should reduce taxes by 20 percent to 30 percent for businesses that sell essential items whose prices are being kept stable by the government as well as businesses that provide boarding services to workers and students.
Hong said HCMC also found the current personal income tax floor – VND4 million/month – as well as the VND1.6 million deduction for every dependent – were too low in the face of rising prices.
HCMC thus also proposed raising these levels as well as considering applying different levels to different regions as prices in cities are generally higher than elsewhere.