National Assembly just approved amendments to Law on Enterprise Income Tax and Law on VAT both came into force from July 1, 2013 to share up difficulties with enterprises while supporting them in the current economic context. Workers of Protrade Garment Co. Ltd. are working on their shift The approval facilitated tax rate reduction road map from January 01, 2014 to January 01, 2016. Accordingly, the current 25% of common tax rate shall be reduced to 22% on January 1, 2014 and 20% by January 1, 2016.From and on July 01, 2013, the mentioned rate shall be directly reduced to 20% against small and medium enterprises and VAT 10% against enterprises’ income from social housing projects.Notwithstanding the before-hand reduction of State’s budget collection, Mr. Le Van Trang, Director of Binh Duong Provincial Department of Tax commented on the confidence of enterprises as the rates are reduced by the road-map.From July 1, 2013 to June 30, 2014, social housing of lower than 70m2 and at lower than VND 15 million/m2 shall be charged at VAT5% or 50% of lower rate. Such reduction VAT reduction shall reduce cost burdens to buyers and enterprises to release their inventories. The enterprise community welcomed the amendments to enterprise income tax and VAT in terms of market participation and production.Mr. Le Thanh Son, Deputy General Director of Tan Vu Minh Real Estates Construction, Investment, Business Co. Ltd. expressed his delight for the tax As the tax rates reduce, the prices shall be reduced to open up opportunities for buyers.Taking the tax reduction in different approach, Mr. Le Hong Phoa, General Director of Protrade Garment (Binh Duong) Co. Ltd., assessed that tax reduction means enterprise support not survival of ‘dying’ enterprises.Reported Thanh Son – Translated by Vi Bao