National Assembly deputies have recommended slashing the corporate income tax to 20% for all enterprises from the current level of 25% as a way to support enterprises.

Chairman of the VCCI Vu Tien Loc said the level of 20% should be applied for all types of firms

They made the proposal at a discussion on revising the Law on Corporate Income Tax on May 29.

The government has proposed reducing the tax to 22% from early 2014 and 20% from 2016, however, many National Assembly deputies said that the cut to 20% should be carried out as soon as possible.

Deputy Nguyen Thi Nguyet Huong from Hanoi said the 20% tax rate should be applied from July 1, 2013 to assist local enterprises, with 69% of them reporting losses.

Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said the level of 20% should be applied for all types of firms, including small and medium-size enterprises.

“Statistics from the tax agencies show that around 30% of companies are able to pay tax, meanwhile, the rest are making losses. However, the rate of 30% serves as a momentum to the national economy’s development,” Mr. Loc noted.

According to Deputy Do Van Ve from Thai Binh Province, enterprises have been facing difficulties and corporate income tax should be brought down to 20% or even 18% in the years to come and all types of businesses should benefit from the reduced tax rate to ensure equal competition.

The VCCI chairman also advocated the removal the cap on corporate advertising funding, adding that this should need a roadmap.