In order to partially support the immediate difficulties of units and businesses, the Government has issued Decree 12/2023/ND-CP on extending the deadline for payment of value-added tax, corporate income tax and tax. personal income and land rent in 2023. For businesses, this is encouragement, sharing difficulties with them in the context of production and export of goods facing many difficulties. However, in many areas, the impact of this policy on businesses is still limited.
Illustrations: Vu Sinh/VNA.
During the first four months of the year, export wood and wood products continued to maintain negative growth with a decrease of 30.4%, reaching only 3.91 billion USD. Particularly, wooden furniture which is the main export item in the structure of wood and wood products has a decrease of over 40%. The export market of wood and wood products mainly to the Americas region decreased by nearly 43% in the first quarter.
Export of wood and wood products in the short term has not shown many positive signs, because inflationary remains at a high level, leading to consumers tightening their spending, reducing demand import in many main markets for Vietnam’s wood and wood products.
In such a difficult time of consumption, Mr. Le Minh Thien, Chairman of Binh Dinh Timber and Forest Products Association, said that even 1 dong is very valuable. Usually by the end of the first quarter, businesses will have to estimate taxes such as corporate income tax, land tax, etc. With not having to pay taxes right away, businesses will have a source of money for production activities. or pay workers…
For many agricultural production units, the extension of these taxes does not help much. According to Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, seafood production has a low tax rate, so the policy of extending payment of some corporate taxes does not have much impact.
The same is true in the manufacturing sector paddy rice, Mr. Nguyen Van Don, Director of Viet Hung Co., Ltd. also assessed, the business does not benefit much. As a small business, it does not rent land from the state, so the benefit of land tax extension is not available. With rice production, value added tax is 0%. Other taxes are not too much.
As a small enterprise producing wooden furniture, Mr. Nguyen Minh Nhat, Director of Nhat Nam Construction Mechanical Plywood Company Limited, assessed that extending taxes for businesses is a good thing. But in the end, businesses must close, not be exempted, or reduced. Therefore, this extension does not help businesses much.
Mr. Nguyen Minh Nhat added that businesses will only be able to cope with difficulties in a short time, when the cash flow is congested. But with this extension, when businesses have to pay taxes but still can’t find money, still have difficulty in business capital, sometimes they fall into debt.
According to Mr. Nguyen Minh Nhat, when the COVID-19 epidemic broke out, the Government also had this policy. But at that time, businesses were still able to produce goods, and goods, although consumed slowly, were still much better than today. Currently, the consumption of goods, especially the export of wooden products, is almost at a standstill.
With small businesses in the industry now almost closed. Large enterprises with good financial capacity are still trying to hold on and maintain production partly to create jobs for people. labor .
Like Mr. Nhat’s business, even though his business is small, he has gone into high-end products and still has orders to maintain production. Although there are orders, there is no profit. Because the goods are urgent, the cost is high, but the price is low. Especially when producing high-end goods, the standard is getting higher and higher, so the number of goods approved by customers is less and less. Thus, with the rejected product, it “eats” the profit of the business.
During difficult times, businesses sometimes have to lower prices to get orders, so even if there are orders at this time, the business is not profitable, Mr. Nhat shared.
According to Mr. Nhat, the Government needs to reduce taxes for businesses, not just extend for businesses. Besides, the Government needs to do how to stimulate the domestic consumer market.
Mr. Nguyen Minh Nhat suggested that the Government may consider reducing personal income tax by encouraging consumers to buy goods and get a direct deduction in personal income tax. At that time, high-income consumers will go to buy goods and will stimulate consumers.
With the Government’s proposal to the National Assembly to consider a 2% VAT reduction, it will also help stimulate consumers. However, according to Mr. Nhat, this tax reduction will not be effective by directly deducting personal income tax.
Because, only the rich have the ability to buy a lot and big. Because when most consumers are tightening their belts, a 2% reduction for all consumers is not enough to stimulate this class of consumers.
In addition, businesses that need urgent support at this time are those in the fields of apparel, leather shoes, furniture, etc. This is a deadlocked business because there is no market. Therefore, tax incentives can be directed at products that the sector is in need of support.
Recognizing the efforts to remove difficulties for businesses from the Government, ministries and branches such as banks are always looking for ways to reduce lending interest rates… but Mr. Le Minh Thien, Chairman of Binh Dinh Timber and Forest Products Association also expressed disappointment with the social insurance agency. With many recommendations from industry associations, this unit has not yet taken action to support workers and businesses.
When businesses create jobs and employees go to work, they can pay social insurance premiums. The unit needs to share with employees and businesses in the current difficult context, Mr. Le Minh Thien suggested.
According to VietnamBiz.vn
