Gov't mulls cutting VAT to help struggling manufacturers

TN News

Email Print

The Ministry of Trade and Industry has suggested that the government halve value added taxes on industrial products to 5 percent in a bid to help domestic firms through the ongoing market slump.

Consumption in the first nine months this year dropped continuously, causing difficulties for companies, Tuoi Tre newspaper October 2 quoted the ministry as saying.

According to the ministry, inventories in the processing and manufacturing industries rose 20.4 percent year-on-year during the period.

Inventories in September barely decreased from a month earlier, even after most banks reduced lending interest rates for companies to around 15 percent per year and the corporate income tax for small and medium-sized enterprises was cut by 30 percent in early August, the ministry added.

The Ministry also asked the government to continue cutting land lease prices for industrial firms by half next year, Tuoi Tre reported.

Like us on Facebook and scroll down to share your comment

More Business News