The mining industry faced difficulties in the first eight months of this year due to being unable to enjoy tax and land rental incentives, said Nguyen Huu Quang, deputy head of the National Assembly's Committee on Finance and Budget.
The National Assembly and the Government have issued many policies to reduce taxes, fees, charges and land rents and extend payment deadlines to support amid the COVID-19 pandemic. However, the mining industry has not accessed these incentives.
The General Statistics Office (GSO) reported the index of industrial production (IIP) for the first eight months of this year was estimated to surge by 2.2% year-on-year, while the mining industry’s IIP reduced 7%.
According to the amended articles of the Law on Value added Tax (VAT), exported goods, which have the total value of natural resources, mineral resources and energy cost accounting for 51% or more of the product cost, do not enjoy reduced or refunded VAT for input materials. These goods do not also enjoy export tax incentives under the Import - Export Tax Law.
These factors are why the mining industry has had negative growth in the first eight months, according to Quang.
The GSO said Vietnam’s industrial production faced more difficulties in August when the pandemic resurged in late July.
The national IIP in August increased by about 3.5% over the previous month, but decreased by 0.6% over the same period last year. Of which, IIP decreased by 5.1% for the mining industry, 0.1% for the processing and manufacturing industry, and 0.7% for electricity production and distribution. While, that of water supply, waste and sewage management and treatment increased by 2.2%.
The IIP in the first eight months of this year was estimated to increase by 2.2% year-on-year. However, it was much lower than the growth rate of 9.5% in the first eight months of 2019.
- Industrial production index growth at lowest level for many years
- Having not reduced tax rates, deducting directly 30% on profit tax of micro and small enterprises in 2020
- CIT revenue in first two months records good result
- There will be more Tax incentives for auto enterprises
- Ministry of Finance proposes to reduce enterprise income tax
- Reducing taxes to reduce burden for businesses
- Government considers reducing several taxes and fees
- Industrial manufacturing sectors were hardest hit by COVID-19 in the first 6 months
- Investment-linked insurance accounted for 71.6% of new mining fee revenue