“The press is arranging, reducing tax to the same level of 10% is appropriate”

On the morning of March 26, full-time National Assembly deputies discussed the draft Law on Corporate Income Tax (amended).

Delegate Thach Phuoc Binh - Deputy Head of the 15th National Assembly Delegation of Tra Vinh province expressed concerns about the tax rate to the press. He said that this issue was raised by delegates at the 8th Session but has not been accepted yet.

National Assembly Delegate Thach Phuoc Binh

The drafting agency proposed to apply the tax rate from 20% to 10% for printed newspapers, and from 20% to 15% for other types of press. The National Assembly delegate from Tra Vinh said that this regulation direction gives rise to inadequacies.

The first is the contradiction between the practical activities of the press and tax policy. Currently, electronic newspapers are gradually becoming dominant, printed newspapers are increasingly declining, many newsrooms have cut or stopped publishing printed newspapers to focus on electronic newspapers.

Besides, both printed and electronic newspapers provide information, guide public opinion and provide communication services but are subject to different tax rates.

Furthermore, the imposition of higher taxes on electronic newspapers negatively affects the press in a competitive environment, many press agencies find it difficult to maintain operations due to declining revenue. The requirement is to convert newspapers to digital but tax policies have not kept up, creating financial barriers for electronic newspapers.

Many cross-border online platforms account for a high proportion of advertising revenue but are only subject to indirect taxes, while domestic press units are subject to both high taxes and fierce competition.

“To be fair, a 10% tax rate should be applied to all press agencies, without distinguishing between print and other types of press,” Mr. Thach Phuoc Binh suggested. The tax reduction will help press agencies overcome financial difficulties, maintain operations and improve the quality of information.

Applying a common tax rate also helps balance different types of journalism, promote digital transformation; sustainable development and have more resources to invest in content and technology.

The 10% tax rate also helps domestic newspapers improve their competitiveness with cross-border platforms.

Deputy Minister of Finance Cao Anh Tuan

Reporting at the meeting, Deputy Minister of Finance Cao Anh Tuan said that in the current context, especially the restructuring of press agencies, it is appropriate to apply a tax rate that does not differentiate between print newspapers and other types of press.

Agreeing with the opinion of the National Assembly delegates, the drafting agency will coordinate with the reviewing agency, the Economic and Financial Committee, to review and accept the plan to stipulate the same rate of 10%, and submit it to the National Assembly at the 9th Session.

Source: https://vov.vn/kinh-te/bao-chi-dang-sap-xep-giam-thue-xuong-cung-muc-10-la-phu-hop-post1187327.vov