Tuesday, September 29 2020

VietNamNews

Mining industry unable to enjoy tax incentives

Update: September, 16/2020 - 09:40

 

Mineral exploitation in Yên Bái Province. — Photo baodauthau.vn

HÀ NỘI — The mining industry faced difficulties in the first eight months of this year due to being unable to enjoy tax and land rental incentives, said Nguyễn Hữu Quang, deputy head of the National Assembly's Committee on Finance and Budget.

The National Assembly and the Government have issued many policies to reduce taxes, fees, charges and land rents and extend payment deadlines to support amid the COVID-19 pandemic. However, the mining industry has not accessed these incentives.

The General Statistics Office (GSO) reported the index of industrial production (IIP) for the first eight months of this year was estimated to surge by 2.2 per cent year-on-year, while the mining industry’s IIP reduced 7 per cent.

According to the amended articles of the Law on Value added Tax (VAT), exported goods, which have the total value of natural resources, mineral resources and energy cost accounting for 51 per cent or more of the product cost, do not enjoy reduced or refunded VAT for input materials. These goods do not also enjoy export tax incentives under the Import - Export Tax Law.

These factors are why the mining industry has had negative growth in the first eight months, Quang told the Đầu tư (Investment) newspaper.

The GSO said Việt Nam’s industrial production faced more difficulties in August when the pandemic resurged in late July.

The national IIP in August increased by about 3.5 per cent over the previous month, but decreased by 0.6 per cent over the same period last year. Of which, IIP decreased by 5.1 per cent for the mining industry, 0.1 per cent for the processing and manufacturing industry, and 0.7 per cent for electricity production and distribution. While, that of water supply, waste and sewage management and treatment increased by 2.2 per cent.

The IIP in the first eight months of this year was estimated to increase by 2.2 per cent year-on-year. However, it was much lower than the growth rate of 9.5 per cent in the first eight months of 2019. — VNS

 

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