Minister of Finance Dinh Tien Dung on March 26 proposed scaling up the fiscal stimulus package from VND30 trillion (US$1.27 billion) to VND80.2 trillion (US$3.42 billion) in a move to support businesses hurt by the Covid-19 pandemic.

Illustrative photo.

Under a proposal sent to the government, the Ministry of Finance (MoF) also suggested extending the tax payment deadline and land rental fees by five months for individuals and businesses, as well as expanding the scope of the support to a wider public.

The MoF also included corporate income tax into a number of taxes subject to deferral compared to the previous proposal. To timely address concern of the business community, the MoF proposed the changes become effective immediately.

The prolongation of payment of value added tax is estimated at VND61.6 trillion (US$2.62 billion), corporate income tax of over VND11.1 trillion (US$473.4 million), VND3 trillion (US$127.39 million) of tax for individuals and household businesses, and land rental fees of VND4.5 trillion (US$191.9 million).

In addition to individuals, household businesses and enterprises operating in the fields of agro-forestry-fishery, industrial production, food processing, transportation, logistics, tourism, entertainment, and services, the fiscal stimulus package is expected to benefit those working in the sectors of education and training, health services and social support.

Pham Dinh Thi, head of the MoF’s Tax Policy Department, said tax payers only need to submit one single request for taxes and land rental fee deferral to local tax authorities, with the deadline on July 30, 2020.

Besides the fiscal stimulus package, Prime Minister Nguyen Xuan Phuc on March 6 requested the State Bank of Vietnam to instruct banks to provide a monetary aid package worth a total of VND250 trillion (US$10.86 billion) in forms of simplification of lending procedures, rescheduling of debt payment, reduction and waiver of interest rates for customers affected by the Covid-19 pandemic.