|National Assembly Chairman Nguyen Sinh Hung delivers a speech to open the session.—VNA/VNS photo
HA NOI (VNS)— National Assembly Chairman Nguyen Sinh Hung suggested the Government reduce small and medium enterprises' income tax to 20 per cent.
At the 16th session of the National Assembly's Standing Committee yesterday, he said that the reduction would help enterprises accumulate capital to feed production and strengthen operation.
However, Deputy Finance Minister Nguyen Thi Mai said that reducing the enterprise income tax to below 23 per cent would create difficulties for the State Budget, particularly given cuts in the private income tax that will take effect in July.
Many deputies agreed with a proposal to create more preferential tax policies for micro-finance enterprises working in agriculture, aquaculture and forestry as well as salt production and agricultural cooperatives.
Chairman Hung suggested that those operating in difficult situation such as off-shore fishing businesses and science and technology enterprises serving farmers in remote and mountainous areas should enjoy exemptions from the current tax rate of 10 per cent.
The Ordinance on Foreign Remittance adopted by the standing committee permits individuals to borrow capital to pay their foreign debts.
While lawmakers agreed that the move would help attract foreign exchange for economic development, the NA Economic Committee report said that any bank defaults would negatively influence the country's confidence index.
The ordinance also allowed foreigners to open accounts and conduct transactions in Viet Nam dong at credit agencies permitted by the State Bank of Viet Nam, in an effort to encourage foreign investors indirectly to invest in the country.
The right to use foreign currency would not be limited with a view to facilitating individuals as well as economic organisations' trading, said the NA's Economic Chairman Nguyen Van Giau.
Deputies agreed that the Government should map out a route for dollarisation prevention following the Party's resolutions.
During the five-day session, deputies will also discuss may other bills such as firefighting and prevention, residence and waste management.
The committee will also discuss the assembly's planned structural reform and prepare to hold votes of confidence on persons holding positions elected or approved by the NA or People's Councils.
Deputies will also question Chief Judge of the People's Supreme Court Nguyen Hoa Binh and Minister of the Ministry of Education and Training Pham Vu Luan on issues relating to the ministry and sector's management responsibilities. — VNS