Government cuts taxes, fees to support automakers, airlines

By Anh Minh   May 30, 2020 | 01:32 pm GMT+7
Government cuts taxes, fees to support automakers, airlines
A car being manufactured at a factory in the northern city of Hai Phong. Photo by VnExpress/Minh Tuan.

The Vietnamese government is supporting the post pandemic recovery of car makers, airlines and small businesses by reducing several taxes and fees.

In a decree issued Friday it cut registration fees for locally produced cars by half until the end of the year. Registration fees are 10-15 percent of a car price in Vietnam.

Special consumption tax on locally produced cars will be deferred until the end of the year starting March.

The decree offers a 50 percent reduction in aircraft take-off, landing and flight management charges between March and September. Some other flight services fees have been scrapped until the end of September.

It reduces land rent by 15 percent for those businesses, households or individuals leasing directly from the state who’ve had to suspend business over the pandemic.

Small and medium businesses will benefit from a 2 percent reduction in interest rates when they borrow from the Small and Medium Enterprise Development Fund.

The government has also proposed that the National Assembly allow a 30 percent cut in environmental tax on jet fuel until the end of the year and another 30 percent cut in corporate income tax for micro businesses.

The moves are part of the government’s efforts to reboot the economy after many businesses had to shut down in March and April in the bid to contain the Covid-19 pandemic.

As businesses resume operations after the social distancing restrictions were eased on April 23, the government has mentioned a revised GDP growth target of 4.5-5.4 percent for this year, down from 7 percent last year.

 
 
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