Tax on deposits proposed
Levying tax on deposits
Public concerns have recently been raised over a proposal by the HCM City Real Estate Association (HoRea) to levy taxes on deposits worth over VND500 million (USD23,912).
HoRea’s Chairman Le Hoang Chau, had proposed that while general bank deposits should be free from tax, those with large amounts of money which could be used buy bonds and bills of exchange should be subjected to a tax so as to increase state budget revenues and supposedly funnel investment into more productive areas of the economy rather than being tied up in deposits.
Many members of the public violently opposed the proposal, claiming they were completely unfeasible.
Delaying annual minimum wage increase
Five associations representing garment and textile, footwear, seafood, fine art wood, and cotton and spinning sectors proposed delaying the annual minimum wage increase to the end of the first quarter or early second quarter with an increase of only 15% per year. The proposal was conveyed to the National Assembly by the HCM City NA deputies as comments on the Ministry of Labour, Invalids and Social Affairs (MoLISA)’s minimum wage increase plans in late October 2012.
These associations disagreed with options to increase the minimum wage by 36% or 25%.
They opposed the MoLISA’s statement that current minimum wages only meet from 50%-60% living costs, saying that enterprises in these industries had already adjusted wages to pay nearly two times higher than the minimum wages for their workers.
Importing three-wheeled motorised vehicles
In order to minimise motorbikes and ease traffic jams, the Hanoi Automobile Transport Association proposed the Ministry of Transport should allow the importation of three or four-wheeled motorised vehicles. Currently, these vehicles are used in Thailand, India and Singapore.
According to the association, these vehicles would not be operated along national highways, but instead offer inter-communal and inter-district transport to carry passengers to bus stations.
Several experts said the proposal needed to be carefully considered as to whether it would be suitable for Hanoi’s transport plans.
MA. Khuat Viet Hung, Director of the Institute of Transport Planning and Management said the current road traffic rules do not address such proposed vehicles. If this was a good solution, it would still be unnecessary for Hanoi to import such vehicles as local producers were easily capable of manufacturing them.
Fees for car and motorbike purchases
In order to minimise the imports of luxury goods, the Vietnam Association of Financial Investors proposed applying fees on the right to buy cars and motorbikes. As a result, buyers of ordinary vehicles would have to pay a fee equivalent to the value of their vehicle. Those who buy luxury vehicles would pay a fee three to ten times higher than their vehicle’s value.
According to the association, the current taxes and fees have failed to discourage the import of luxury vehicles as despite their level, they are not sufficiently high to deter better-off buyers.
The association also proposed that the government not license the setup of new automobile and motorbike factories that are designed to serve the domestic market as there are currently too many producers.
