(VOV) – National Assembly deputies on Tuesday afternoon continued their discussion of the revised Law on Value-added Tax and amendments and supplements to the Law on Corporate Income Tax at the 5^th session of the 13^th National Assembly.

The revised Law on Value-added Tax focuses on subjects exempted from the value added tax, including personal insurance, agricultural insurance and insurance for ships and fishing equipment.
The draft Law on Corporate Income Tax seeks more preferential tax policy to some sectors and areas. Moreover, in order to implement tax reform policy up until 2020, the draft law provides that from January 1^st, 2014, the general tax rate will be set at 22 percent. From January 1^st, 2016, the general tax rate will be at 20 percent and the preferential tax rate will be adjusted to 17 percent down from 20 percent. Deputy Nguyen Ngoc Hoa from Ho Chi Minh city said: "Tax rate is an important factor in investment attraction. If our tax rate is higher than that in neighboring countries, investors will shift their money elsewhere. According to surveys, a tax rate of 20 percent is rather competitive compared to other countries in the region. The cutting of the tax rate is reasonable as we have to compete with these other countries.  Moreover, in the current difficult conditions, enterprises need support. I believe that with the reduced tax rate, enterprises can expand their production cycle from the money saved". 

Earlier the same day, the National Assembly Standing Committee also presented revisions to the draft Law on Fighting Terrorism. Most deputies agreed that while this law is essential in the current integration context, the definition of terrorism in the law should be made more comprehensive. Creating a Steering Board for Fighting Terrorism was also discussed. Deputy Nguyen Minh Kha from Can Tho said: "International cooperation in fighting terrorism – sharing information, training, and technical facilities – is essential because we do not have much experience in this field. This is a sensitive issue which called for assurances of independence, sovereignty, and territorial integrity". 

The deputies continued their discussion of the revised Law on Value-added Tax and amendments and supplements to the Law on Corporate Income Tax.

On Wednesday, National Assembly deputies are expected to discuss reports on the implementation of socio-economic development plans and the state budget in 2012 and in the first months of this year, as well as the state budget balance in 2011.