Legislators want government stimulus package to benefit farmers

Published: 26/05/2009 05:00

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Deputies called on the government on Tuesday to offer farmers easier access to its economic stimulus package at the ongoing session of the National Assembly (NA), Vietnam’s legislature.

Procedures for obtaining bank loans should be simplified for farmers who want to buy inputs and equipment, deputy Duong Kim Anh said.

She also urged the government to invest more in rural infrastructure.

Deputy Nguyen Huu Nhi said farmers have suffered the most from the economic slowdown but their access to cheap loans remains blocked by complicated procedures.

Deputy Nguyen Van Son wanted the government to set aside a substantial sum from the stimulus package for developing rural transport.

“I think it is a basic requirement,” he said, adding that a better transport system would help boost production and generate more jobs.

Deputy Danh Ut said the government should extend the term of the interest-free loans for farmers to 5- 10 years.

He also called for scrapping a regulation that requires farmers to buy locally-made equipment to be eligible for the loans.

No personal income tax reduction/exemption

Lawmakers opposed a proposal to reduce or waive personal income tax for the second half of the year.

Dang Nhu Loi, deputy chairman of the NA’s Committee for Social Affairs, also rejected the proposal saying the move would not have the expected effect of stimulating consumption by poor families.

Nguyen Dinh Xuan, a Tay Ninh Province representative, concurred saying the tax should be collected and used to support farmers.

Earlier, the NA’s Financial and Budgetary Committee, which appraised the proposal, had also opposed it.

The government earlier proposed waiving income tax for the first half of the year.

Deputy Nguyen Van Tuyet of Yen Bai Province agreed but said it should not be extended to the second half, warning that could cause a revenue shortfall.

MINING PROJECTS CIRCUMVENT REGULATIONS

The NA session on Tuesday saw heated debate over the bauxite mining projects in the Central Highlands in places like Tan Rai in Lam Dong Province and Nhan Co in Dak Nong Province.

Deputy Dieu K’re of Dak Nong Province said bauxite mining and alumina extraction would contribute significantly to the economy.

Deputy Le Thanh Phong of Lam Dong Province said the mining had been discussed by the provincial Party unit in the 1990s but was not carried out because “Lam Dong was still a poor province subsidized [by the government].”

He said the Tan Rai project would contribute to growth and would not have a serious impact on agriculture in the province.

But deputy Nguyen Minh Thuyet of Lang Son Province said the projects would cause environmental and other damage and would “use tax collected from residents to profit companies.”

Thuyet also said the whole thing should have been considered a single project and got approval from the NA as required for key national projects.

“Dividing [it] into smaller ones to reduce the investment involved is a circumvention,” he said.

Reported by Bao Van – Luu Quang Pho

Provide by Vietnam Travel

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