(VOVWORLD) - A resolution on corporate income tax cuts is necessary to help small and medium-sized businesses survive current difficulties, said lawmakers at Tuesday's National Assembly session.
The resolution reduces income taxes that businesses, cooperatives, and other organizations have to pay in 2020. Vietnam has 760,000 enterprises, 93% of which are small, 4% medium-sized, and 3% large.
"I strongly support reducing income taxes for businesses affected by the COVID-19 pandemic, especially small and medium-sized enterprises (SMEs)," said Phung Van Hung, a deputy of Cao Bang province.
"SMEs account for 97% of Vietnam’s businesses and play a vital role in national economic growth, but many need support due to weak financial resources, technology, and management. If corporate tax cuts are given to medium-sized enterprises, it won’t affect the state budget much."
Some deputies said support is also needed for key projects of large businesses, as well as industries like airlines and tourism which have been hurt by the pandemic.