Tax reduction is one of the solutions helping companies to
increase competitiveness and sustainable development, thereby
contributing to increased revenues in the future Immediate tax reduction can cause shortness of State budget revenues; however it will help the long-term stability, even increase revenue when the business community regained investment to expand production business after overcoming the difficulties. These are just the immediate solutions to the case but they would not last forever.Therefore, the business community still needs a radical tax policy to not only overcome the current difficulties, but also to ensure release of long-term burden and to improve competitiveness in the domestic and foreign markets with lower tax rates, especially enterprise income tax rate. According to economist Pham Chi Lan, enterprise income tax rate of currently fixed 25% for all enterprises is higher than other countries in the region and the world. High taxes not only create burden for businesses in the context of the current difficulties, but also reduce the competitiveness of the companies in the long run of the context of integration. Therefore, the National Assembly and the Government should study to reduce the enterprise income tax rate to about 20% accordingly. In addition, every economy has its stable and unstable development cycles. Meanwhile, the expansion, reduction or exemption of taxes do not cover the entire business community, where each business has its own difficulties. According to Mr. Paik In Ki, Chairman of the Association of Korean Companies in Binh Duong province, foreign investors chose Vietnam as an investment destination by favorable investment environment, but if Vietnam does apply higher tax rates than other countries in the region, it will affect the investment decisions of foreign investors in Vietnam. Mr. Paik In Ki also asserted that, the consideration to reduce the tax rate will help companies to achieve higher profits, offering them more resources to reinvest while the company also has opportunities to take better care their workers. "The tax rates are dependent on the decisions of the National Assembly and the Government. However, we are hopeful that the National Assembly and the Government should consider the present difficulties of the business community to apply the appropriate tax rates and to help enterprises overcome difficulties.As businesses grow and are expanded with manufacturing operations, business, the State budget would be through increased thanks to better tax payments.Thus, the before hand reduction of tax rates may reduce budget collection but in the long run it can be increased thanks to higher revenues by the growth of the companies," asserted a company representative. Reported by Dam Thanh – Translated by Vi Bao
Tax breaks for long-term stable source of revenue
Confronting the current difficulties of the business community, the government has proposed to the National Assembly to pass the exemption, relaxation, reduction of enterprise income tax (EIT), value added tax (VAT), land rents, land-use right taxes. Tax reduction is one of the solutions helping companies to
increase competitiveness and sustainable development, thereby
contributing to increased revenues in the future Immediate tax reduction can cause shortness of State budget revenues; however it will help the long-term stability, even increase revenue when the business community regained investment to expand production business after overcoming the difficulties. These are just the immediate solutions to the case but they would not last forever.Therefore, the business community still needs a radical tax policy to not only overcome the current difficulties, but also to ensure release of long-term burden and to improve competitiveness in the domestic and foreign markets with lower tax rates, especially enterprise income tax rate. According to economist Pham Chi Lan, enterprise income tax rate of currently fixed 25% for all enterprises is higher than other countries in the region and the world. High taxes not only create burden for businesses in the context of the current difficulties, but also reduce the competitiveness of the companies in the long run of the context of integration. Therefore, the National Assembly and the Government should study to reduce the enterprise income tax rate to about 20% accordingly. In addition, every economy has its stable and unstable development cycles. Meanwhile, the expansion, reduction or exemption of taxes do not cover the entire business community, where each business has its own difficulties. According to Mr. Paik In Ki, Chairman of the Association of Korean Companies in Binh Duong province, foreign investors chose Vietnam as an investment destination by favorable investment environment, but if Vietnam does apply higher tax rates than other countries in the region, it will affect the investment decisions of foreign investors in Vietnam. Mr. Paik In Ki also asserted that, the consideration to reduce the tax rate will help companies to achieve higher profits, offering them more resources to reinvest while the company also has opportunities to take better care their workers. "The tax rates are dependent on the decisions of the National Assembly and the Government. However, we are hopeful that the National Assembly and the Government should consider the present difficulties of the business community to apply the appropriate tax rates and to help enterprises overcome difficulties.As businesses grow and are expanded with manufacturing operations, business, the State budget would be through increased thanks to better tax payments.Thus, the before hand reduction of tax rates may reduce budget collection but in the long run it can be increased thanks to higher revenues by the growth of the companies," asserted a company representative. Reported by Dam Thanh – Translated by Vi Bao
Tax reduction is one of the solutions helping companies to
increase competitiveness and sustainable development, thereby
contributing to increased revenues in the future Immediate tax reduction can cause shortness of State budget revenues; however it will help the long-term stability, even increase revenue when the business community regained investment to expand production business after overcoming the difficulties. These are just the immediate solutions to the case but they would not last forever.Therefore, the business community still needs a radical tax policy to not only overcome the current difficulties, but also to ensure release of long-term burden and to improve competitiveness in the domestic and foreign markets with lower tax rates, especially enterprise income tax rate. According to economist Pham Chi Lan, enterprise income tax rate of currently fixed 25% for all enterprises is higher than other countries in the region and the world. High taxes not only create burden for businesses in the context of the current difficulties, but also reduce the competitiveness of the companies in the long run of the context of integration. Therefore, the National Assembly and the Government should study to reduce the enterprise income tax rate to about 20% accordingly. In addition, every economy has its stable and unstable development cycles. Meanwhile, the expansion, reduction or exemption of taxes do not cover the entire business community, where each business has its own difficulties. According to Mr. Paik In Ki, Chairman of the Association of Korean Companies in Binh Duong province, foreign investors chose Vietnam as an investment destination by favorable investment environment, but if Vietnam does apply higher tax rates than other countries in the region, it will affect the investment decisions of foreign investors in Vietnam. Mr. Paik In Ki also asserted that, the consideration to reduce the tax rate will help companies to achieve higher profits, offering them more resources to reinvest while the company also has opportunities to take better care their workers. "The tax rates are dependent on the decisions of the National Assembly and the Government. However, we are hopeful that the National Assembly and the Government should consider the present difficulties of the business community to apply the appropriate tax rates and to help enterprises overcome difficulties.As businesses grow and are expanded with manufacturing operations, business, the State budget would be through increased thanks to better tax payments.Thus, the before hand reduction of tax rates may reduce budget collection but in the long run it can be increased thanks to higher revenues by the growth of the companies," asserted a company representative. Reported by Dam Thanh – Translated by Vi Bao
