Proposals for tax exemptions and tourism stimulus measures.

The Ministry of Culture, Sports and Tourism has recently submitted a document to the Prime Minister proposing tax exemptions and reductions, and the implementation of tourism stimulus programs in localities to encourage businesses in the trade, service, and tourism sectors to actively and effectively participate in the 2013 tourism stimulus program.

Following the direction of Deputy Prime Minister Nguyen Thien Nhan, Head of the State Steering Committee on Tourism, the Ministry of Culture, Sports and Tourism, in coordination with the Ministry of Industry and Trade and other relevant ministries, sectors, and localities, has developed a tourism stimulus program linked to promoting the development of service industries in 2013 to help the tourism and trade service sectors overcome the negative impacts of the global economic recession and current domestic economic difficulties.

Stemming from the practical difficulties faced by the tourism industry and at the request of localities and businesses operating in the tourism and service sectors at the conference to gather opinions from tourism businesses in the three regions organized by the Ministry of Culture, Sports and Tourism at the end of 2012, the Ministry of Culture, Sports and Tourism proposes to the Prime Minister to continue tax exemptions and reductions and implement the tourism stimulus program in 2013. This will help businesses in the trade, service, and tourism sectors overcome difficulties and challenges, create conditions to promote the development of the tourism industry, and encourage businesses in the trade, service, and tourism sectors to actively and effectively participate in the tourism stimulus program.

The increase in prices of essential goods (gasoline, electricity) as well as land tax rates has led to higher domestic tourism service prices, while tourism service prices in neighboring countries tend to decrease. This has made it difficult for Vietnamese tourism businesses to compete with other countries in the region and has not stimulated the development of the domestic service industry. Therefore, to encourage tourism and trade businesses to participate in the tourism stimulus program, the Ministry of Culture, Sports and Tourism proposes that the Prime Minister direct the Ministry of Finance to submit to the Government, and then to the National Assembly, a proposal to allow a 50% reduction in value-added tax and a 50% exemption or reduction of corporate income tax in 2013 for tourism and trade businesses.

Besides proposing that the Prime Minister direct the Ministry of Finance to coordinate with the Ministry of Industry and Trade and other relevant ministries and units to accelerate the pilot implementation of the value-added tax refund policy for tourists, and continue to propose preferential policies to encourage tourists to increase shopping in Vietnam, the Ministry of Culture, Sports and Tourism also requested the Prime Minister to direct the People's Committees of provinces and centrally-governed cities to proactively introduce policies and measures to stimulate tourism demand in their localities, abolish regulations prohibiting or requiring sub-licenses for tourist transport vehicles to circulate freely in and outside urban areas at all hours of the day, and implement a campaign to improve civilized service in public transport and tourist transport services in their localities.

Local authorities are strengthening management and taking decisive measures to address problems that negatively impact the environment and landscape, and disrupt security and safety for tourists at local tourist destinations, especially the issues of illegal taxis, begging, street vending, touting, robbery, and fraud targeting tourists.

According to (baovanhoa.vn) - HL