(VOVWORLD) - The National Assembly Standing Committee has approved Resolution 406 to support businesses and people affected by the COVID-19 pandemic. By reducing or waiving corporate income tax, personal income tax, and valued added tax, Resolution 406 aims to help businesses restore their operation and grow.
 Paloma Vietnam Company Ltd at the VSIP Hai Phong (Photo: Danh Lam/VNA) |
Support for COVID-19-affected businesses, people
Resolution 406 directly aims at small and medium sized enterprises and household businesses affected by COVID-19. They are the backbone of the national economy but most vulnerable to impacts of the pandemic. According to the Ministry of Finance, 97% of businesses nationwide received a 30% reduction of corporate income tax this year, mostly small and medium sized. In addition, nearly 4 million household businesses nationwide were exempted from personal income tax and value added tax in the 3rd and 4th quarter. Reducing or waiving taxes under Resolution 406 is re worth more than 880 million USD. This will help to reduce the prices of products and services, stimulate production, and reduce businesses’ expenses.
Secretary General of the Vietnam Association of Seafood Exporters and Producers Truong Dinh Hoe says Resolution 406 is a great encouragement to businesses.
Vo Viet Hung, Director of the CP Hanoi Food Processing Group, said, 'This aid package is not just cash support but a vaccine dose to save businesses. The tax incentives will compensate businesses’ investment in upgrading their technology, studying the market, and investing in digital transformation.'
 Online meeting on ways to help businesses affected by the COVID-19 between the Prime Minister and businesses and localities (Photo: Nhat Bac/VGP) |
More practical policies, mechanisms in place
Since 2020, the Vietnamese government has adopted several policies to support businesses and people affected by COVID-19. Tax relaxation, reduction, and exemption cost 5.7 billion USD in 2020. This year, the government and the National Assembly Standing Committee will again delay payment of value added tax, corporate income tax, personal income tax, and land leases for those affected by the pandemic, and reduce import-export taxes on certain several products to improve the competitiveness of businesses. In general, tax and land lease incentives that the government has adopted this year have been worth more than 6 billion USD.
At the ongoing NA meeting, Prime Minister Pham Minh Chinh promised more solutions to recover the economy and stronger support for businesses.
'The government will focus on mechanisms and policies to provide practical, effective support for businesses and the public. We will aim at restoring the labor market which has been seriously damaged by the COVID-19 pandemic, recovering and promoting production and business activities, and ensuring supply chains, and commodity distribution. We will mobilize all possible resources to contain the pandemic and develop the socio-economy.' said Prime Minister Chinh.