Vietnam's Tourism Advisory Board (TAB) has proposed to halve value added tax (VAT) for the tourism sector from 10% to 5% to help businesses deal with the acute respiratory disease caused by the novel coronavirus SARS-CoV-2 (COVID-19) outbreak.
Vietnam's Tourism Advisory Board (TAB) has proposed to halve value added tax (VAT) for the tourism sector from 10% to 5% to help businesses deal with the acute respiratory disease caused by the novel coronavirus SARS-CoV-2 (COVID-19) outbreak.
Stairs of Da Lat Market - a popular destination for visitors has been deserted recently.
Vietnam's tourism sector has faced difficulties due to the COVID-19 epidemic.
(Photo nld.com.vn)
The board has also requested the Government to extend tax payment deadline for the businesses to ease their pressure.
For this year, the Government should consider exempting their social insurance and health insurance contributions and delaying the collection of personal income tax and corporate income tax until the outbreak ends.
It also suggested a 50% reduction of use fees for hotels, resorts and entertainment parks for the 2020-2021 fiscal year.
Authorities also need to reduce unnecessary inspections for tourism enterprises that often take time and money.
The TAB has asked the Government to disburse the Tourism Development Assistance Fund which aims to implement marketing plans and promotion programmes to help the sector.
According to TAB, the Government should accelerate the public investment projects to develop infrastructure for the future tourism growth.
Meanwhile, the Government needs to boost construction of Long Thanh airport, upgrading of Tan Son Nhat, Phu Bai and Dong Hoi airports, and building the new Chu Lai Airport. It should promote the expansion of Noi Bai Airport and complete the HCM City-Can Tho expressway and parts of the North-South Expressway.
Another solution proposed by TAB is to simplify procedures and shorten licensing time for businesses that have important roles such as aviation.
Now, the tourism industry has contributed 9.2% to Vietnam's gross domestic product (GDP).
According to TAB, hotel occupancy rate has fallen by between 20% and 50% compared to the same period last year, depending on the location.
Vietnam's airlines have suffered huge losses because almost all flights to mainland China, Hong Kong and Taiwan have been cancelled. That has seen a reduction of about 50% for the regional international and 40% for domestic flight bookings.
Source : https://english.vov.vn/economy/tourism-industry-to-consider-huge-tax-cuts-for-travel-companies-411173.vov
