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Vietnam Today

MoF proposes cutting business fees and charges

Released at: 09:43, 12/09/2017

MoF proposes cutting business fees and charges

Illustrative image (Source: VOV)

Finance ministry prepares and distributes draft circulars for comment on reducing business costs.

by Quang Huy

The Ministry of Finance (MoF) has proposed a reduction in fees and charges to materialize the government and the Prime Minister’s policies and declaration that 2017 would be the year of reducing costs for enterprises.

In a draft circular amending Circular No. 286 from 2016, the ministry called for fee cuts in the issuance of food export certificates, at the request of the importing country, from VND350,000 ($15.5) per shipment to VND200,000 ($9).

At the same time, it proposed abolishing fees for the granting of quarantine certificates for animals, terrestrial animal products, imported or transited seafood, temporarily imported products for re-export, or goods transferred through border gates.

In a draft circular amending Circular No. 225 from 2016, the level of fees for evaluation and the issuance of bio-safety certificates for the use of genetically modified products such as food and animal feed is to be cut from VND120 million ($5,330) to VND105 million ($4,621) per case.

Regarding draft amendments to Circular No. 277 from 2016, the ministry proposed reducing fees for the evaluation and confirmation of information content in drug and cosmetics advertising from VND1.8 million ($79) to VND1.6 million ($70) per application. It has also called for cuts in fees for the evaluation and granting of permits for the import of traditional medicines and pharmaceuticals, from VND200,000 ($9) to VND150,000 ($6.6) per item.

In addition to these, the ministry has also proposed changes in fees for the registration of enterprises and business certificates, which are stipulated in Circular No. 215 from 2016, with fees to be reduced from VND200,000 ($9) to VND100,000 ($4.5) per company.

The ministry has sent the draft documents to related ministries, ministerial agencies, the Vietnam Chamber of Commerce and Industry (VCCI), and the people’s committees of central-level cities and provinces for comment and contributions. It has also requested research institutions provide comments, which will be collected and referred to while revising the drafts, so that they can send timely reports to the government and the Prime Minister.

Head of VCCI’s Legislation Department Mr. Dau Anh Tuan said that proposed fee and charge cuts of up to 50 per cent are significant, especially for those just starting a business, as reducing establishment costs by a few hundred thousand VND is a worthy undertaking. Agreeing, Standing Vice Chairman and Secretary General of the Vietnam Association of Small and Medium Enterprises Mr. To Hoai Nam applauded the amendments, saying these fees and charges have a direct impact on businesses.

The MoF has recently proposed an increase in the VAT rate from 10 to 12 per cent, saying that it was necessary amid shrinking State budget revenue and public overspending. Economic experts, however, believe that the poor would suffer the most from the increase, as the majority of their spending is for daily necessities.

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