Vietnam may cut taxes to rescue businesses: report

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Vietnam's Finance Ministry is considering a relief package for local businesses worth VND25 trillion that includes a 30 percent cut in corporate income tax and a deferment of value-added tax payments. 

The tax concessions will be given to small and medium companies in agriculture, seafood, footwear and garment sectors that employ many workers, the Tuoi Tre newspaper reported Thursday, citing an unidentified ministry source.

Apart from the 30 percent corporate tax cut, these companies will have an extra six months to make their value-added tax payments originally due between April and June.

The Finance Ministry also plans to cut by half land rentals for businesses in tourism and trading.

According to the ministry, if all the measures in the relief package are approved, they will cost the state budget around VND25 trillion, including between VND14 trillion and VND16 trillion worth of tax cuts.

Ngo Huu Loi, head of tax policy department at the ministry, said tax concessions are necessary if the government wants to revive production and clear the growing inventories in the country.

Vietnam's industrial output grew by just 4.3 percent in the first four months, the slowest pace since at least 2010. Last year, the growth was 10 percent during the same period, local media reported, citing the General Statistics Office.

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