The government has proposed to the National Assembly unique tax incentives for businesses in some prioritized sectors in Buon Ma Thuot, the biggest town in Vietnam's Central Highlands.
This will be the first time the legislative body considers unique preferential policies for an administrative unit under a province. Buon Ma Thuot in Daklak province is a national coffee hub.
The government suggested corporate income tax (CIT) exemption in the first four years, a 50% reduction in CIT in the next nine years, and low CIT rate of 10% in the two following years. The normal CIT in Vietnam is 20%.
Such policies are for businesses in prioritized sectors of farm produce, tourism, healthcare, education and training, production of energy-saving items, logistics, inland container depot and warehousing, and research and development.
The government also seeks exemption of personal income tax (PIT) for experts and scientists working in Buon Ma Thuot for five years.
The proposal on unique tax preferences for Buon Ma Thuot, which will be issued in the form of a National Assembly resolution, details an instruction of the Politburo on developing Buon Ma Thuot in a fast and sustainable manner.
However, some lawmakers said such draft policies have a limited scope, and do not feature breakthoughs, creativity or spillover effects.
National Assembly Chairman Vuong Dinh Hue said more research is needed to draw up a proposal with the highest preferences for developing coffee value chains as Buon Ma Thuot is the largest town in the Central Highlands and a coffee kingdom.
Previously, the National Assembly only issued special policies for the cities of Ho Chi Minh City, Danang, Hanoi, Hai Phong, and Can Tho; and provinces of Thanh Hoa, Nghe An, and Thua Thien Hue.
Buon Ma Thuot is at the heart of the Central Highlands, connecting economic hubs in the country's south-central and southeastern regions and the Vietnam-Laos-Cambodia development triangle.
The lawmaking body is scheduled to continue discussing unique preferences for Buon Ma Thuot in October.