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Tax reduction seen as solution to stimulate investment, consumption
Tax reduction is the key to stimulating investment and consumption, said experts at a workshop on market price and solutions to reign inflation held in Hanoi on Dec. 30.
According to Vu Dinh Anh, Deputy Director of the Price and Market Research Institution under the Finance Ministry, tax reduction aiming at reducing the burden on enterprises will help lessen the risk of economic decline in 2009.
Anh said it will be impossible for Vietnam to achieve a high economic growth rate next year in the context of the world’s economic downturn and limited domestic and foreign capital sources.
Participants at the workshop also emphasised a flexible monetary-credit policy to cope with an instable market and the threat of economic slowdown. They said the Government should continue to adjust the prime interest rate in accordance with changes in prices and inflation and facilitate credit access for small- and medium-sized enterprises.
Head of the Price Management Department under the Finance Ministry Nguyen Tien Thoa proposed that while pursuing a market price mechanism, the State still has to keep control over a group of commodities in line with the law.
According to experts, it is possible for Vietnam to fulfill its targeted economic growth rate of 6.5 percent and keep the inflation rate under 15 percent though it is not easy.
VNA
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