Hanoi (VNA) – The Ministry of Finance has proposed a tax deferral to support people andbusinesses affected by the coronavirusdisease (COVID-19) fallout.

The proposal, made as part of a draft decree already submitted to the Government, suggests thegovernment extend the deadline for payment of value-added tax(VAT), personal income tax and land lease fees by five months for people and businesses hurt by the COVID-19 outbreak. 

The policy is applicable to companies, organizations, individuals, groups ofindividual, household businesses operating inthe areas of agriculture, forestry and fisheries; food processing andproduction; textile and garment; footwear; rubber production; electronics andcomputer manufacturing; automotive manufacturing and assembling (except forvehicles with fewer than 9 passenger seats); transportation; lodging andcatering services; and tourism.

The total value of taxes and fees subject to the policy is estimated at around30.1 trillion VND (nearly 1.3 billion USD).

Under the proposal, monthly taxpayerswill receive a five-month extension for VAT payment due for the months from March to Junewhile for quarterly taxpayers, the extension will be applied to payment of the firstand second quarters of this year.

As the virus is spreading globally, a number of preventive measures, including quarantine and travelrestrictions, have been put in place, causing difficulty for the transportationof people and goods between countries, like Vietnam and China. Many sectors inVietnam are facing shortage of materials, which were mainly imported fromChina, making them struggle to seek alternatives.

The Ministry of Finance said the outbreak has been negatively affecting most industriesand sectors with micro- and small-sized enterprises and household businessesbeing the hardest hit.

The proposed policy aims to financially support these vulnerable groups andallow them to maintain and resume production, contributing to the achievementof economic growth goals in 2020, it said.

According to the Ministry of Investment and Planning,if the new coronavirus is contained in the first quarter of 2020, Vietnam’seconomic growth this year is projected to be 6.25 percent, down 0.55 percentagepoint from the 6.8 percent goal set by the government. If the epidemic persistsuntil the second quarter, the economic growth may only reach 5.96 percent, 0.84percentage point lower than the yearly plan./.