The Government has ordered the Ministry of Transport to complete two component projects of the North - South expressway (Highway NH45 - Nghi Son and Nghi Son - Dien Chau sections) by 2023. The Government has issued a Resolution to implement Resolution No. 1213 of the National Assembly Standing Committee on the transformation of the investment form of these two projects. The resolution assigns the Ministry of Transport to approve the adjustment of the two component projects according to regulations. The Ministry is also assigned to review, determine and take responsibility for the accuracy and reasonableness of the adjusted investment capital of the two component projects. The Ministry of Planning and Investment was asked to coordinate with the Ministry of Finance to arrange capital for these projects. Chairmen of the provinces and cities where the two expressways pass through are responsible for site clearance. The Ministry of Transport has to urgently implement following procedures to meet the deadline for the completion of the two projects in 2023. On February 4, the National Assembly issued a resolution on changing the investment form of these two component projects to public investment. It is expected that the change of investment mode to public investment will promote disbursement of public investment capital, production, supply of construction materials for projects, and create jobs and income sources for workers. Domestic enterprises will directly implement projects expected to spur economic growth. Vu Diep …
Transport
Vietnam transport ministry proposes support for coronavirus-hit airlines
The Hanoitimes - Local airlines could see a decline in revenue of up to VND65 trillion (US$2.7billion) due to the pandemic, much higher than an earlier estimate of VND30 trillion (US$1.27 billion). The Vietnamese Ministry of Transport has proposed support policies that include removal of import and environmental taxes for airlines that are suffering from the Covid-19 pandemic. Airplanes of Vietnamese airlines are parked at an airtport. The proposal includes exemption of the import tax and environmental protection tax for aviation fuel from January 23 to the end of 2020 or 90 days after the government officially declares the pandemic has been contained. In case there is no state budget-sourced relief funding for air carriers, the ministry requested a decrease of 50% on import tax and environmental protection tax on aviation fuel. In addition, the airlines, through the transport ministry, also proposed to be extended from tax payment and other budget contributions. The ministry requested to waive and defer payment of corporate income tax, personal income tax and foreign contractor tax from January 23 to the end of 2020 for all the airlines. The ministry also asked the prime minister to assign the State Bank of Vietnam to help the carriers reschedule bank loans, extend loan payment, free them from penalties on late payment during the pandemic. On March 15, following a proposal sent by the Ministry of Transport to the Ministry of Planning and Investment on support for air carriers, Airports Corporation of Vietnam (ACV) has exempted and reduced a number of aviation service fees. Accordingly, fees for seven kinds of services are lowered, including aircraft navigation (cut by 50%), pipe ladder services, carousel rentals, automatic baggage handling, check-in counters and ground services (by 10%). ACV also exempted office rental fees for airlines that have ceased flying and reduced fees by 30% for airlines that are still …
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Vietnam tax revenue down 1.4% in two-month period
The Hanoitimes - The fact that nearly 19,800 enterprises temporarily suspended operation in the first two months of 2021, up 60.5% year-on-year, has also contributed to a decline in tax revenue. Vietnam’s tax revenue in the first two months of 2021 is estimated at VND246.4 trillion (US$10.7 billion), representing a decline of 1.4% year-on-year. Tax officers instruct locals to declare tax. Photo: Ha Lam Upon breaking down, revenue from crude oil dropped by 53.3% year-on-year to VND4.9 trillion (US$212.63 million), equivalent to 21.1% of the yearly estimate, while domestic revenue reached VND241.55 trillion (US$10.47 billion), or 22.1% of the estimate. “The figure remained a positive note taking into consideration a week-long Tet holiday in February causing production paralysis and a Covid-19 outbreak in a number of provinces/cities,” Director of the General Department of Taxation Cao Anh Tuan revealed the figure at a meeting on March 3, noting trade, transportation and tourism have all been impacted as a result. According to Tuan, the fact that nearly 19,800 enterprises temporarily suspended operation in the first two months of 2021, up 60.5% year-on-year, has also contributed to a decline in tax revenue. Among measures to mitigate negative impacts on the state budget, tax authorities have been focusing on recovering tax arrears, reaching VND5.11 trillion (US$221.7 million) as of February 28, or 17% of the target. “Total tax arrears as of February 28 declined by 10.4% year-on-year,” Tuan added. Tuan expected the serious Covid-19 situation globally would continue to impact the local economy and subsequently tax revenue in 2021. “The taxation department aims to realize government’s supporting program in an effective and timely manner to support the business community affected by the pandemic, so that they could recover from a difficult period and return to operation,” Tuan stressed. Tuan requested tax departments at various …
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