‘We need to reconsider the assumption that the rich will suffer more than the poor as VAT increased. Because, in fact, more than 80% of the Vietnamese population is poor,’ said Pham Anh Tuan, Chairman of Board of Directors of the Cooperative Union of Agricultural Consumption (UCA).
Acting Chairman of Board of Directors, Hochiminh Stock Exchange (HOSE) Le Hai Tra said that the average daily trading value can reach up to VND10,000 billion (roughly US$500 million).
“It is increasingly difficult for businesses to shoulder the burden of extra costs while business freedom is being tightened,” according to Nguyen Khac Hieu, Director of AZ Art., JSC.
“VAT rise will cause a burden on the poor.”
I may suggest changing the term “license” to "certificate" and re-arranging the conditions needed for getting the certificate. The violent interventions into the business products should also be minimized, such as changing the word "maize" into “corn" in a pharmaceutical product.
"We set out too many business conditions and force businesses to comply. Meanwhile, the management is still loose, causing backdoor business and group interest," said lawyer Truong Thanh Duc.
This is the opinion of Tran Huu Huynh, President of Vietnam International Arbitration Center (VIAC), on the proposal of the Ministry of Planning and Investment (MPI) to eliminate obstructive sub-licenses for enterprises.
According to Associate Professor, Dr Ngo Tri Long, former head of Price and Market Research Institute under the Ministry of Finance, reasons put forward by the Ministry to increase value added tax (VAT) are inappropriate and unconvincible.
"Without touching the complexity and ineffectiveness of administrative ministries, all measures of removing sublicenses are just half-completed," chief executive officer (CEO) of Lua Viet Tours Nguyen Van My resolutely said.
The proposal to remove nearly 2,000 obstructive sub-licenses of the Ministry of Planning and Investment (MPI) will definitely encounter fierce opposition from the governing bodies which are using such procedures to earn palm-greasing money.
