Giving support to people and business in the wake of Covid-19 resurgence

The goal of accelerating economic recovery and achieving growth of 6.5% this year is becoming more difficult as many local governments must suspend some activities and services to prevent the spread of the virus.

Airlines and travel agencies have barely recovered and are now facing the risk of customers cancelling their tours right ahead of the summer travel peak. The sectors that have been forced to close or scale down operations are not major contributors to government revenue but they directly affect the jobs and incomes of many workers.

It is estimated that as of the first quarter of 2021, Vietnam still had 9.1 million workers adversely affected by the Covid-19 pandemic. A survey by the Vietnam Chamber of Commerce and Industry shows that the resilience of Vietnamese enterprises seems to have run out more than a year into the pandemic.

On April 19, the government introduced an order known as Decree 52 on the continued extension of the deadlines for paying value added tax, corporate income tax, personal income tax and land lease in 2021. It is the third time that the government has provided direct tax assistance so that enterprises can have more resources for recovery and growth.

The noteworthy point of Decree 52 is not the size of the support package, estimated at VND115 trillion (US$5 billion) in tax deferral, but rather in how it is implemented to benefit taxpayers the fastest. The decree came into effect right on the date of signing and stipulates that taxpayers only need to submit one request for all the taxes given the deferral at the same time of submitting tax declaration documents. One day later, the General Department of Taxation sent a message to local tax offices, asking them to popularise the new policy to taxpayers under their jurisdiction. This procedure can now be handled through the national public service portal and the portal of tax agencies.

Proposals to remove difficulties for enterprises and the people are still being discussed by the government. The Ministry of Labour, Invalids and Social Affairs has been tasked with reviewing a government resolution introduced last year to support the people struggling due to Covid-19 and putting forward practical support measures. The requirement is that the criteria should be discussed publicly before they are promulgated. At the time, other appropriate policies for those hit by Covid-19 should be supplemented so that the livelihoods of the people, especially the vulnerable, are not affected.

(Source: NDO)