Lawmakers Agree to Lower Incorporate Income Taxes
Majority of lawmakers at the National Assembly session Thursday [May 15] to lower corporate income tax (CIT) to 25 per cent from current 28 per cent as regulated in the amended CIT draft law, state media said on May 16.
Reducing corporate income tax will create favorable business and investment environment, help companies improve financial accumulation and capability and competitiveness, the Nhan Dan newspaper said.
The 25 per cent tax rate is reasonable, lawmakers said.
Vu Hong Anh, a deputy from Hanoi, said the current tax rate of 28 per cent is not so high in comparison with other countries.
Deputy Phuong Huu Viet from Bac Ninh opposed the idea, saying that even the rate of 25 per cent is too high. He proposed the rate at 20 per cent.
“Experiences of well developing economies such as China and Russia show that they tend to reduce tax to promote enterprises to better investment business, resulting in higher income tax values,” Viet said.
He indicated that when Vietnam cut the CIT from 32 per cent to 28 per cent in 2003, the state budget revenues in 2004 increased VND3 trillion, equivalent to the figure that people had thought the budget would lose.
Deputy Nguyen Thi Van Yen from Hung Yen said production and trading companies will be levied the tax rate of 25 per cent, but the rate should be reduced to 22 per cent for processing companies.
On the same day, the lawmakers also discuss the amended law on VAT. Majority of them agreed with the three tax rate levels, at 0 per cent, 5 per cent and 10 per cent. (People, Liberated Saigon)
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