The Government has basically consented with a tax exemption and reduction package to support enterprises and people affected by COVID-19 as proposed by the Ministry of Finance, the Government Office announced Thursday. 

The Government tasked the ministry to finalize the proposal and submit to the Government prior to August 10 before submitting to the National Assembly Standing Committee for consideration and approval.       

The proposed package, which is estimated to be worth around VND20 trillion (US$897 million), aims to provide timely support for the pandemic-hit citizens and businesses.

Under the proposal, the ministry suggested a 30 percent reduction in the corporate income tax which enterprises must pay in 2021.

A 50 percent reduction in tax which household businesses and individuals operating in all sectors must pay in the third and the fourth quarter of 2021 was proposed, together with a 30 percent reduction in the value added tax for several sectors.

It also proposed exemption of the fee for late payments arising in 2020 and 2021 for enterprises and organizations which incurred losses for the three consecutive years of 2018, 2019 and 2020.

The pandemic had badly affected lives of citizens and production and business of enterprises, especially those of small and medium sizes and household businesses, as well as a number of sectors, including tourism, transportation, and accommodation and catering services.

According to the General Statistics Office, in the second quarter of 2021, 12.8 million people aged 15 and above were negatively affected by the COVID-19 pandemic.