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VND20,000 billion to stimulate consumption and production in 2009
As a result of tax exemptions and reductions, VND20,000 billion will be taken from the state budget to stimulate consumption and encourage investment in production and business, according to the General Department of Taxation.
The reduction in taxes is estimated to cost the state budget VND3,100 billion in 2009. With the policy of reducing Value Added Tax by 50 percent on some goods in the domestic market, the 2009 state budget will drop by another VND1,000 billion.
For personal income tax, about 700,000 people will be subjected to tax breaks as about VND2,000 billion of tax is being waived. To carry out the stimulus policy, the Government has allowed medium and small sized businesses a drop of 30 percent in corporate income tax, starting from the fourth quarter of 2008 until the end of 2009.
The state budget revenue in 2009 is scheduled to fall by VND6,500-6,800 billion, equal to 45 percent of what was forecasted (VND14,500 billion).
VOV
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