Comprehensive solution needed to support loss-making enterprises
Aviation is one of the loss-making industries in 2022 that is being proposed to be exempted from late tax payment penalty. (Photo: tienphong.vn)
The Ministry of Finance has proposed to develop a resolution to exempt late tax payment penalties for loss-making enterprises in 2022, but enterprises said a more comprehensive solution is needed to support them to earn profits and revenue, and gain orders to overcome the current difficult period.
In 2022, many enterprises in the real estate, securities, steel, and aviation industries suffered losses from a few hundred to a thousand billion Vietnamese dong due to difficulties. Statistics of financial data provider Fiin Group showed that in the fourth quarter of 2022, there were about 251 loss-making enterprises out of a total of about 1,000 enterprises that published financial statements. The loss-making enterprises also caused the amount of deferred tax to constantly increase over the years and reach nearly 135 trillion VND (5.75 billion USD), accounting for 9.2% of the total budget revenue in 2022.
The Ministry of Finance said the penalty on late tax payment in 2022 increased compared to previous years as a result of the COVID-19 pandemic. The volatile prices of oil and input materials affected most economic sectors, which caused many difficulties for taxpayers in production and business. The taxpayers made loss and owed tax so the tax payment penalty increased.
Under the current regulations, taxpayers are charged a late tax payment penalty of 0.03% per day of their total tax liability. According to calculations by the Ministry of Finance, the proposed exemption of late tax payment penalty can reduce the State budget revenue by about 2.5 trillion VND.
To support enterprises, the Ministry of Finance has also proposed reduction of 36 fees and charges in many economic sectors by 50% from July 1 this year.
Mac Quoc Anh, deputy chairman and general secretary of the Hanoi Association of Small and Medium Enterprises, said enterprises made a loss and could no longer pay their tax liability. If they are not exempt, enterprises will have their tax liability suspended, affecting their reputation when signing cooperation deals.
In order to support enterprises through the difficult times, Anh suggested the Government speed up the disbursement of public investment capital to push money into the economy, besides freezing previous debts and bad debts. Along with that, enterprises want banks to reduce interest rates on loans from the end of 2022 that are bearing high interest rates.
Can Van Luc, chief economist of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), said financial difficulties and cash flow disruption are biggest challenges enterprises have to face. The ability to absorb capital of enterprises and the economy is currently very low. In the first five months of 2023, credit growth was about 3%, much lower than the same period last year. The channel to raise capital from the stock and corporate bond markets is still narrow. Disbursement of public investment is still slow with many localities having not met the requirements.
In the past three months, a series of Government decisions related to healthcare, land, real estate, construction, finance, credit, import and export have been implemented. Though many incentive policies and supporting packages for enterprises have been issued, they have not been really effective in practice, said Luc.
Luc suggested the Government focus on removing difficulties that are hindering enterprises, such as regulations related to fire prevention, visas for tourists and experts, and VAT refund.
Besides, competent authorities should completely resolve violations of securities and real estate.
All of the works need to be assigned with specific deadlines and strict sanctions should be imposed if they are not implemented, Luc said.
According to representatives of enterprises, along with the extension and exemption of late tax payment penalty, the Ministry of Finance needs to have specific policies to revive enterprises in the long term, such as sharply reducing corporate income tax, exempting and reducing taxes and fees paid for administrative procedures and services./.
Related News
Risk prevention solutions for export processing and production enterprises
09:12 | 07/05/2024 Regulations
Binh Duong Customs and Korean businesses solve difficulties and obstacles
15:03 | 28/04/2024 Customs
The supporting industrial enterprises transform for sustainable development
08:20 | 01/05/2024 Import-Export
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Latest News
SBV ready to intervene to stabilise foreign exchange rate: Deputy Governor
15:41 | 08/05/2024 Finance
Warn about the fraudulent tricks of stock investment
16:30 | 07/05/2024 Finance
State budget revenue estimated at VND733.4 trillion
14:40 | 06/05/2024 Finance
Six localities should expedite site clearance and public investment
10:36 | 05/05/2024 Finance
More News
Banks announce plans to significantly increase capital
15:11 | 04/05/2024 Finance
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam
13:47 | 04/05/2024 Finance
Banks strengthen information security systems
14:55 | 03/05/2024 Finance
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance
Closely monitoring fluctuations to calculate the appropriate time to adjust prices
15:35 | 02/05/2024 Finance
Strictly monitor market fluctuations to appropriately adjust prices
14:46 | 27/04/2024 Finance
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Your care
SBV ready to intervene to stabilise foreign exchange rate: Deputy Governor
15:41 | 08/05/2024 Finance
Warn about the fraudulent tricks of stock investment
16:30 | 07/05/2024 Finance
State budget revenue estimated at VND733.4 trillion
14:40 | 06/05/2024 Finance
Six localities should expedite site clearance and public investment
10:36 | 05/05/2024 Finance
Banks announce plans to significantly increase capital
15:11 | 04/05/2024 Finance