Dec 31, 2020 / 09:46

Vietnam finance ministry extends 50-100% cut in 29 fees to aid businesses

With the approval from Prime Minister Nguyen Xuan Phuc, the new validity period of fees and expenses cut for businesses would be until June 30, 2021.

The Ministry of Finance (MoF) has released a new circular stipulating the extension of validity period of the existing cut of 50-100% in 29 fees and expenses, set to take effect on January 1, 2021.

 

As the Covid-19 pandemic continues to wreak havoc on global and local economies, the MoF has been providing supporting programs for businesses and people affected by the pandemic, including the removal and reduction  of 29 fees and expenses until the end of 2020.

While the pandemic is set to continue persisting for a longer period, with the approval of Prime Minster Nguyen Xuan Phuc, the MoF has decided to extend the validity period of current supporting programs until June 30, 2021.

This include 50% reduction in securities fees (registration fees for the issuance of certificates for brokerage firms, fund management firms; license fees for operation of securities depository and member funds), fees for granting construction capacity certificates, appraisal of construction projects.

In the banking sector, licensing fees  for bank or of individual and organization qualification certificate fee have also been slashed by 50%.

The MoF continues to cut 30% fees for the use of data related to environment and hydro-meteorology.

In 2020, such supporting programs are estimated to cost the state budget VND1 trillion (US$43.4 million).

This time, the MoF did not extend the 50% reduction in the registration fee for domestically-produced cars, which is set to expire on December 31, 2020.

The finance ministry considered the move as a short-term solution to support local automobile manufacturers/assemblers during the pandemic, while the cut has reduced state budget revenue by VND3.7 trillion (US$160.58 million).

However, during the implementation process, embassies of some countries, including Thailand, Indonesia, and the European Chamber of Commerce (EuroCham), expressed concern that such a reduction shows discriminatory treatment against imported cars.