National Assembly deputies again disagreed on the feasibility of the amendments to the laws on Value Added Tax and Corporate Income Tax in discussions yesterday.

Photo: VNA

The amendments were supposed to encourage businesses and authorise the construction of budget apartments for tower socio-economic groups, including workers in industrial zones and students, by including a 5 per cent reduction in tax for those categories.

Some deputies said it would not be wise to amend the laws which had been in effect for just a year.

What the Government needed was a long-term social housing policy, said deputy Dang Nhu Loi of southernmost Ca Mau Province.

He doubted the fact amendments would benefit the right people.

The move might bring smiles to brokers or speculators instead, Loi said.

Deputy Nguyen Thi My Huong from Ha Noi said the amendments, supposed to come into effect next year, could not be applied equally without clear definition of low-income people and would even encourage bribery.

“These bills would create favourable conditions for some people to take advantage of and the humanitarian policy of the Government would be distorted,” she said.

“The popular trend in the world is to split social and tax policies while Viet Nam is now doing the opposite. Also, should we amend laws for short-term reasons?”

Finance Minister Vu Van Ninh’s efforts later in the discussion to persuade the Assembly to support the revised bills failed to impress the deputies.

Ninh’s arguments included that the demands for housing were far from the State budget and that the Government would issue other documents to make sure the policy would benefit the right people.

The revised laws would give favourable tax status to housing projects for students and low-income workers across the country. They would be exempt from tax for the first four years and then would enjoy a major tax discount over the next nine years.

VietNamNet/Viet Nam News