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Vietnam to Offer Discounts and Extension on Taxes to Boost Growth - Vietnam Briefing News

Jan. 24 – Vietnam will offer discounted rates on value-added tax plus cut export tariffs for rice, fertilizer and copper ore in addition to extending deadlines for tax payments as a way of easing burden on companies coping with the global slowdown.

According to Thanh Nien News, there will be a 50 percent tax reduction on cars, ships, coal, chemicals, tires, engineering equipment, cement structures, automatic data-processing machines and precious stones. The reduction measures is expected to boost production and exports as the economic crisis deepens.

In 2008, Vietnam’s economy grew by 6.2 percent, the lowest figure in nine years. The government is looking at 6.5 percent growth for 2009. Hotels, travel services and printing business will also be qualified for the tax cuts.

Moreover, firms producing engineering equipment and construction materials, including building companies, travel agents, food and fertilizer traders will be given a nine months extension to pay taxes.