Proposed policies to support the transportation business corporation in 2021
The Ministry of Transport has just sent a document to the Ministry of Planning and Investment to submit to the Government a number of proposals, related to supportive policies for those facing difficulties due to the significant impact of the COVID- 19.
The Ministry also cautiously assumed that there are many complicated and unpredictable developments of the epidemic in the upcoming time, so policies to support transport businesses are extremely necessary. Therefore, a written has been sent to Ministry of Planning and Investment to report to the Prime Minister, who will directs relevant ministries and agencies to consider and approve some additional support solutions for businesses in this field.
In particular, the Ministry of Transport proposed the Government to extend the effective period of Circular 112/2020 issued by the Ministry of Finance until December 31, 2021, instead of expiry date June 30, 2021 as previous version. Circular 112/2020 is all about the provision of a number of charges and fees to support and remove difficulties for production and business, ensuring social security to cope with the Covid-19 epidemic.
The support of road maintenance fees (a 30% discount for passenger transportation’s coach buses and 10% discount for this business units), under Circular No. 74/2020 of the Ministry of Finance, was also proposed to extend until December 31, 2021.
The Ministry also consulted the Government some solutions to support the transportation business units, in order to help this group quickly restore production and commercial activities. In which, tax rates, charges and fees are proposed to be cut down to the maximum, including: reducing value added tax to 0%; lessening 50% corporate income tax, deferring tax payment up to 6 months effectively until the end of 2021 (excluding late gross interest), parking-free for picking up passengers at airports, or other ports.
Passenger transportation companies are also expected to receive some incentives, such as a 50% discount on the expenses in the station, 50% discount on the registration fees for new vehicles until the end of December 31, 2021.
These proposals of the Ministry of Transport are extremely at the right time, expressing the Ministry’s listening and concern to businesses working in the industry. At the same time, it motivates these company to take a chance to expand their business, even though the epidemic is still complicated.
In order to take advantage of the supportive policies that may be approved by the Government in the near future, the passenger transportation businesses should prepare carefully such as investing in vehicle quality or increasing fleet numbers. King Long buses, with powerful and modern design, European engines and many other utilities, will be the perfect choices for short and mid-range roads that you should not miss.
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