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Tourism-services tax hikes need to be delayed: Business leader
The government should put off a proposed hike in tax on tourism-related services to safeguard the tourism industry which has already been buffeted by the global economic downturn, a top business executive said.
Under the amended Special Consumption Tax Law, set to take effect April 1, tax on golf services will double to 20 percent and those on casino and electronic gaming services will go up from 25 percent to 30 percent.
Baron R. Ah Moo, head of the Vietnam Business Forum’s Tourism Working Group and CEO of Indochina Hotels and Resorts, said encouraging tourists to spend money and easing their financial burden by deferring the tax to a “more appropriate” time should be a priority in the current context.
As the visa process and infrastructure are already handicaps for the Vietnamese tourism sector, the tax increase would badly hurt its competitiveness compared to other countries, Ah Moo added.
In the first two months this year, the number of international arrivals fell 10 percent year on year to 688,700, according to the Vietnam National Administration of Tourism.
With the low season approaching, the number of foreign visitors is likely to continue to drop, the tourism industry fears.
The Vietnam Business Forum is a regular forum between the government and businesses and is chaired by a Deputy Prime Minister, the World Bank Country Director, the IFC Country Manager, and the Minister of Planning and Investment.
TBKTSG
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