Friday, April 3 2020

VietNamNews

TAB proposes halving tax for tourism businesses

Update: March, 10/2020 - 10:29

 

Stairs of Đà Lạt Market - a popular destination for visitors has been deserted recently. Việt Nam's tourism sector has faced difficulties due to the COVID-19 epidemic. — Photo nld.com.vn

HÀ NỘI — The Việt Nam Tourism Advisory Board (TAB) has proposed to half value added tax for the tourism sector from 10 per cent to 5 per cent to help businesses deal with the novel coronavirus outbreak.

The board has also requested the Government to extend tax payment deadline for the businesses to ease their pressure.

For this year, the Government should consider exempting their social insurance and health insurance contributions and delaying the collection of personal income tax and corporate income tax until the outbreak ends.

It also suggested a 50 per cent reduction of use fees for hotels, resorts and entertainment parks for the 2020-21 fiscal year.

Authorities also need to reduce unnecessary inspections for tourism enterprises that often take time and money.

The TAB has asked the Government to disburse the Tourism Development Assistance Fund which aims to implement marketing plans and promotion programmes to help the sector.

According to TAB, the Government should accelerate the public investment projects to develop infrastructure for the future tourism growth.

Meanwhile, the Government needs to boost construction of Long Thành airport, upgrading of Tân Sơn Nhất, Phú Bài and Đồng Hới airports, and building the new Chu Lai Airport. It should promote the expansion of Nội Bài Airport and complete the HCM City-Cần Thơ expressway and parts of the North-South Expressway.

Another solution proposed by TAB is to simplify procedures and shorten licensing time for businesses that have important roles such as aviation.

Now, the tourism industry has contributed 9.2 per cent to Việt Nam's GDP.

According to TAB, hotel occupancy rate has fallen by between 20 per cent and 50 per cent compared to the same period last year, depending on the location.

Việt Nam’s airlines have suffered huge losses because almost all flights to mainland China, Hong Kong and Taiwan have been cancelled. That has seen a reduction of about 50 per cent for the regional international flight bookings and 40 per cent for domestic flight bookings. — VNS

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