Vietnamese Government To Reduce Value-Added Tax And Corporate Income Tax In Textile And Garment Sector

Viet Nam, at the cabinet meeting, the Vietnamese Prime Minister, Mr. Ranjig, said that because the gross domestic product (GDP) grew by only 3.1% and fell into the trough for many years, he would ask the national assembly to modify the growth rate of GDP in 2009 to 5% and raise the planned budget overexpenditure to about 8%.

At the cabinet meeting held in October 2008, the government decided to maintain a GDP growth rate of 6.5% in 2009. By cutting expenditure, excess expenditure was controlled at 4.3%, compared to 4.8% in 2008.

The Minister of finance also suggested lowering the value added tax (VAT).

He also proposed to reduce and exempt small and medium-sized enterprises from corporate income tax, and to exempt low-income individuals from personal income tax. He announced that he would slash corporate income tax in 9 months, which had less than 10 billion Vietnamese shield or less than 300 workers.

In addition to other measures that the government should take, the Vietnamese government will reduce the corporate income tax rate of textile and garment industries, footwear and machinery engineering enterprises by 30%, or extend the repayment period of import enterprises.

Editor in chief: Xu Qiyun