Hanoi (VNS/VNA) – The Ministry of Finance has slashed administration fees innumerous sectors to help the economy get back on its feet when the COVID-19pandemic eases.

Construction companies, travel firms, banks and credit institutions as well aswater resource businesses will all be given a helping hand.

Reductions range from 20 to 50 percent and took effect from May 5. They willremain in play until the end of the year.

New banks can expect a massive 50 percent reduction in licensing fees meaningthey now just pay 70 million VND (3,000 USD). Business adjustments andextension of operation fees will now be 35 million VND.

Several costs in the construction sector have also been reduced by half,including fees for capacity certificates, basic and technical designevaluations and construction evaluations.

There are also big breaks for tourism companies as well. From May 6 untilthe end of the year, licence fees for international and domestic travelservices will be halved as well as the costs of tour guide cards.

The fees in the water resource sector would be cut by 20 percent while the feefor using hydro logical data by 30 percent.

Once the year ends, all the fees will return to their normal prices.

Original draft proposals from the Ministry of Planning and Investment werefirst rejected by the Ministry of Finance who did not agree with some of theplans.

In the draft proposed in mid-April, the plan was to slash corporate incometaxes by 50 percent for the whole of 2020 for all small and medium sizedenterprises (SMEs) and cooperatives. But the finance ministry said thisproposal should not be included as it could overlap future policy changes and aVAT reduction would not affect overall production costs.

It also suggested a similar sized cut in Value Added Tax (VAT) for companieswho are struggling to help them reduce production costs.

In response, the Ministry of Planning and Investment said instead of reducingVAT, it would propose to postpone payments to September to help firms to havemore working capital.

The Ministry of Finance did not agree with the proposal of reducingregistration fees by 50 percent for cars produced or assembled domestically tothe end of this year.

It said this would violate international commitments about discriminationbetween domestically-produced and imported products. The registration fees werenow equivalent to 10-12 percent of the vehicles’ prices.

The proposal of reducing registration fees was raised by the Ministry ofIndustry and Trade with an aim to promote domestic automobile production, thefinance ministry said, adding that a review should be carried out to ensure therewas no conflict with any international commitments.

The Ministry of Finance also disagreed with plans to cut 50 percent fromenvironment protection tax on fuels – a major resource for the transportationsector.

It said this was because the Law on Environment Protection did not regulate thetax reductions and petrol prices were dropping considerably.

Regarding this proposal, the Ministry of Planning and Investment said that thereduction should be applied for aviation fuel to support the aviation industrywhich was heavily affected by the COVID-19 pandemic./.