The National Assembly's Committee for Finance and Budget has turned down government's plans to exempt VAT tax, corporate income taxes and personal income taxes for 2012.

Personal tax exemptions were already introduced in August 2011

It reasoned that in August 2011, the government had issued Resolution 8 which provided a 50% VAT and income tax exemption in 2011 for landlords who rent rooms to workers, students or for use as private kindergarten classes on the condition that prices remain reasonable in a bid to assist business in difficulties.

However the results of these decisions had not been fully evaluated. In addition, it had proved hard to monitor the prices offered by those benefiting from the resolution.

Reviewing the implementation of Resolution 8, the government said it had exempted VND3 billion (USD144,000) in VAT for 100 enterprises and VND7 billion (USD335,000) for 25,000 landlords.

The 50% corporate tax reduction for enterprises that provided meals for shift workers, had cut VND2 billion (USD96,000) in costs for 150 businesses.

Previously in early May, the government announced its bailout packages for enterprises in difficulties. The government decided to cut corporation income tax by 30% for small and medium-size businesses, excluding those operating in lotteries, real estate, securities or insurance areas.

The government also planned to exempt taxes in 2012 for landlords who rent rooms to workers, students or for use as private kindergarten classes on the condition that prices remain reasonable.

Source: Dtinews