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Assoc. Prof. Dr. Dinh TrongThinh, Senior Lecturer of Finance Academy

In the context that the state budget was in trouble due to the adverseimpacts of the Covid-19 epidemic on production and business activities, the Ministry of Finance still actively reviewed and submitted many solutions to support people and enterprises with a total amount of VND220,000 billion to the Government. What does this mean, Sir?

The support packages to businesses are really timely. First of all, because the Government has determined from the beginning that anti-epidemic measures arethe top priority, it has suspended all activities such as studying, festivals, tourism and transportation. In addition, the social distancingcaused a great reduction in production and business, plus imports from China, Japan, South Korea or the export of big markets such as the EU, the US and Japan also has difficulties in trade due tothe outbreak. Therefore, the support packages on taxes and fees will helpbusinesses keep a financial amount in their accounts to maintain operations. Along with that, reducing many types of costs and fees also helps businesses reduce costs to fight the epidemic. These unprecedented support packages are extremely timely and effective.

Specifically, based on the beneficiaries prescribed in Decree 41 on tax extension, all small and micro enterprises in line with the Law on Support for Small and Medium Enterprises are extended tax payment and land rent. Thus, there will be a very large part of businesses benefiting from this policy.

In addition, the policy of extending the payment of taxes and land rents for businesses also spreads to business households operating in many industries and sectors of the economy, from agriculture, forestry, fishery, commerce, transportation, catering services and tourism.

At present, although supporting production and business as well as social security is very important, there are many concerns about the ability to balance the state budget. What is your opinion on this issue?

Naturally, the state budget in this period will be affected as the tax and fee support policies of the Ministry of Financehavereduced the budget revenue. But there is no need to worry because the Tax industry can exploit revenue from businesses benefiting from the disease such as e-commerce and medical supplies.

In particular, the Tax authority can step up inspection and examination of revenue sources that are often lost such as transfer pricing of large businesses, recipients of money from Google, Facebook, taxes from real estate transfer in order to offset revenue sources.

When support policies are implemented, what many people are most concerned about is self-seeking. What do you think about this issue, sir?

It is necessary to pay close attention to cases of taking advantage of the epidemic to be self-seeking from support packages of the State. The management agency should carefully evaluate applications, eliminating cases that apply for incentives even though they were not affected by the disease.

For example, in the field of wholesale and retail business, there are industries that are insolvent or go bankrupt because they cannot do business, but there are some industries benefiting; or some community services are difficult but there are services that still work normally. Therefore, it is necessary to consider the levels of support.

In addition, it is also necessary to specify more information about the levels of tax exemption and reduction exemptions and specific support beneficiaries to avoid policy abuse. When the information on tax exemption, reduction, extensionand subject is made public and transparent, businesses can monitor each other, avoiding making false statements to benefit.

The support from the State must be right and reach those that need support, so that enterprises can overcome difficulties, prepare conditions for restructuring and return to operate more effectively after the epidemic passes, and at the same time preventing losses for the State budget.

Do you have any recommendations for regulatory agencies as well as beneficiaries in this context?

With the current situation, it is necessary to pay attention and supervision to assess accurately the damages of enterprises. At the same time, it is necessary to regularly listen to the difficulties and obstacles of enterprises in the process of implementing policies timely and correctly in the spirit of the Prime Minister.

In addition, regulatory agencies also need to apply technology in their management activities to cut administrative procedures and provide information to businesses as quickly as possible, minimize costs and time for the businesses.

As for businesses, in addition to expectation of support from the State, businesses should also have the spirit of self-reliance, overcome difficulties by changing markets, restructuring production to meet the requirements of buyers. Currently, Vietnam has signed a lot of new-generation trade agreements, so in a situation where there is no problem with foreign partners, it can turn to other markets as well as change the mindset and improve the quality of goods.

Thank you, Sir!