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SSC proposes delaying securities income tax
The State Securities Commission (SSC) is planning to ask the National Assembly to delay imposing personal income taxes on securities trading until the end of 2009.
Head of the SSC’s Market Development Department Nguyen Son recently made the announcement, saying the request should support the local exchange as market indices have dropped and show no early signs of recovery.
“The delay should calm down securities investors’ psychology which has governed market development,” he said.
Income taxes on securities trading, which were originally planned for early next year, would not make a significant contribution to the State budget, Son said, explaining that with the current market trends, investors could not even earn enough money to reinvest, let alone pay taxes.
“In addition, our neighbour China has lifted taxes on securities trading to encourage investment. This shows that there’s no reason for us to impose taxes right now,” said Son.
As for intervening in the local exchange, which many investors are expecting from market regulators, Son affirmed that now was not the right time to make any interventions.
“We continue to watch the market to make sure we can intervene in case of emergency, but now is not the time,” said Son.
According to Son, impacts from the global credit crunch remain in Vietnam, most obviously showing in exports. However, other economic sectors are doing well, which should help the recovery of the general economy.
He noted that lower input costs of some materials like steel, cement and petroleum, alongside lower lending interest rates at commercial banks, should serve as supporting factors to improve the economy.
“Investors should rely on real performances of the national economy and of the enterprises to invest,” Son stressed. “This would help them make reasonable decisions, rather than following the herd mentality.”
VOV
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