[vnforum] Comments - Business Beat

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Business Beat (Quoted from VNS)-10/16
1. With Cuu Long (Mekong) Delta provinces, long known as Viet Nam's main rice
granary, Submerged by flood waters, several agronomists have called on the
Government to lift agriculture tax for farmers, at least for two years from now.

They argue that declined agro-product prices have robbed farmers of much of
their purchasing power, which leads to deflation despite loosening credit
policies.

The floods have severely impacted rice production, and losses in basic
infrastructure will be another heavy burden for farmers in the coming months.
The agronomists say abolishing agriculture tax would help bridge the income gap
between urban dwellers and the rural population, which is likely to grow wider.

The country's annual agriculture tax collection is estimated at VND 1,600
billion whereas the cost of maintaining the tax collection service for the
sector is VND 1,200 billion. Therefore, the temporary agricultural tax
abolition might set the budget back by just VND 400 billion while benefiting
millions of farmers.

Their appeal is backed by a similar proposal from the General Tax Department,
which is considering tax exemptions for flood-hit regions this year and the
next. The Government has also decided to exempt agricultural land use tax for
the period.

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