Vietnam plans $3.38bln tax incentives to back coronavirus-hit companies

According to the ministry’s proposal, of the total $3.38 billion tax program, value added tax accounts for about $2.59 billion, corporate income tax of over $468 million, tax of individuals and household businesses accounts for $126.5 million, while land rent tax is more than $189.7 million.

With the coronavirus pandemic, Vietnamese businesses, especially those operate in the manufacturing sector, are suffering a slowdown or suspension in production, due to the lack of raw materials from China, which is a major supplier of steel and components for electronics, automobile, and phone manufacturers in Vietnam.

Earlier, Vietnam’s central bank cut interest rates by 0.5-1 percentage points and scrap transaction fees, a prompt action to support slowdown economy which had been expected 6.8% growth for this year.

The regulator also ordered commercial banks nationwide to follow suit and they offered $12.4 billion in preferential credit to coronavirus-hit enterprises.

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