Facing many obstacles and challenges caused by inflation, many businesses must narrow their production and business whilst laborers must tighten their belt in price storm. In this context, the Government planned to reduce and exempt some kinds of taxes to ensure social welfare and help enterprises overcome difficulties. Talking with Binh Duong Newspaper’s reporters, chairman of Binh Duong Young Entrepreneur Society, Ph.D Mai Huu Tin said that this is a timely deed from the government to share difficulties with people and businesses…

 At an apparel company in Ben Cat district.

What is your comment of cutting of some kinds of taxes for businesses?

Implementation of inflation control measures from the government is a compulsory requirement. However, the other side of the measures caused many difficulties for businesses, owing to high interest rates, price hike of input materials. Both businesses and people have suffered many difficulties, so any measures of curbing their burdens are applauded. Tax reduction and exemption from the government is a timely deed.

Many businesses are expecting reduction and exemption of business income tax. However, the tax is one of large budget collection sources. So, how is reduction and exemption of the tax implemented to create a reasonableness?

In fact businesses are not expecting reduction and exemption of business income tax. Tax payment is not a big deed for them. Therefore, if reduction and exemption of tax help businesses maintain sale growth, budget collection will win positive signals. I think that the important thing is how to exist and keep jobs for laborers. The government has reduced 30% of business income tax in 2011 for small and medium businesses. And, I agree with the measure. The measure helps businesses improve their production capacity.

What do you think of exemption and reduction of personal income tax?

The government asked to exempt personal income tax from Aug. 1 to Dec. 31, 2011 for tax payers at level 1. It is a reasonable thing. All assistances for the tax payers at level 1 will help social welfare policies win bigger results amid the current difficult context.

Will reduction and exemption of the mentioned kinds of taxes help businesses recover their capacity in the remaining of this year?    

In fact, businesses’ operation depends on various factors. I consider exemption and reduction of some kinds of taxes for businesses as a sharing between government and businesses.

Thanks a lot!

Reported by D.Thanh – Translated by A.C