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NA to look into draft resolution on tax cuts, vote on two draft laws

The National Assembly (NA) is discussing a draft resolution on corporate income tax reduction and voting on the draft revised youth law and the draft law on mediation and dialogue at court on June 16.

This is part of the ongoing ninth session of the 14th-tenure parliament in Hanoi.

The morning plenum focuses on the draft resolution on reducing corporate income tax that businesses, cooperatives, non-business units and other organisations have to pay in 2020.

Minister of Finance Dinh Tien Dung said the complex and unpredictable COVID-19 developments are forecast to affect a number of sectors, especially small-sized enterprises. Therefore, an NA resolution on corporation income tax cuts is necessary for small firms to overcome difficulties, thus helping to achieve as highest economic growth as possible.

Under this draft, businesses with total revenue not higher than 50 billion VND (nearly 2.17 million USD) and not over 100 employees covered by social insurance in 2020 will benefit from a reduction of 30 percent in the corporate income tax they have to pay this year.

If this proposal is approved, State budget revenue will drop about 15.84 trillion VND. If the tax cut is expanded to medium-sized firms, the revenue may decline by about 22.44 trillion VND.

Following the plenary debate on this draft, legislators are set to have group discussions on the draft Vietnam border defence law.

In the afternoon, deputies will vote on the draft revised youth law and the draft law on mediation and dialogue at court.

After that, they will scrutinise the draft revised law on residence./