Tax exemption and reduction to encourage resource mobilization for cultural development

Discussing the Draft Law on Value Added Tax (amended), at the 6th Conference of full-time National Assembly deputies, delegate Bui Hoai Son - Hanoi delegation was concerned about tax exemption and reduction to encourage the development of the cultural sector.

Delegate Bui Hoai Son - National Assembly Delegation of Hanoi City

According to delegate Bui Hoai Son, tax policy in general and value added tax in particular have great significance for cultural development.

Even in some countries in the world , although there is no Ministry of Culture, just by encouraging and motivating policies such as tax exemption and reduction, their cultural and artistic fields have developed very well.

In our country, through many studies, conferences and seminars, we all see tax bottlenecks in supporting and mobilizing resources for cultural development.

Therefore, tax exemption and reduction (or at least maintaining the tax rate) is a specific, practical and sincere solution that we can do to develop culture, thereby creating conditions to revive social ethics and sustainably develop the country from culture.

According to delegate Bui Hoai Son, although this draft Law on Value Added Tax (amended) has had a number of adjustments and amendments, there are still some shortcomings as follows: Firstly, in Clause 12, Article 5, capital contributed by the people and humanitarian aid for cultural establishments are still subject to tax.

Thus, it does not encourage the contribution of support sources for cultural development at the grassroots level. Therefore, the Drafting Committee of the Law project should carefully study this content.

Second, point e, clause 26, Article 5, creating conditions for collectors and individuals to buy Vietnamese antiques from abroad, thereby proving national sovereignty over culture and history, preserving cultural and historical values ​​of the nation should be encouraged. Therefore, import tax should be exempted for individuals. Tax should only be levied when they buy and sell non-Vietnamese antiques, domestically or for export.

Third, in Article 9, cultural activities, exhibitions, physical education, sports, performing arts, film production, film import, film distribution and film screening are already entitled to a 5% tax rate under current tax law. These are areas that help improve people's spiritual life and deserve tax incentives.

However, after many Party resolutions, State policies, and opinions of Party and State leaders that priority should be given to cultural development, we implemented it in the opposite way by increasing taxes to 10%.

Therefore, delegate Bui Hoai Son requested the Drafting Committee of the Law on Value Added Tax (amended) to review this content.

The opinion of the Hanoi delegation is thought-provoking. In fact, most European countries have applied special tax rates to cultural organizations, individuals or businesses that contribute to support cultural organizations or their sponsors.

At the same time, VAT deductions will be implemented for some cultural products; individuals will be encouraged to contribute a percentage of their income to culture; cultural tax, in which a percentage of the price of each cultural product and service will be converted into revenue for the National Funds.

The cultural industry is being assessed as having the potential to become an important economic sector of Vietnam, with a vibrant market for domestic creative cultural products and services in the coming years. By 2030, Vietnam strives for cultural industries to contribute 7% of the country's GDP and by 2035, contribute 8% to GDP.

Accordingly, there needs to be support in terms of mechanisms and policies for this industry to develop, especially building incentive mechanisms, tax exemptions and reductions that are suitable to reality and feasible to attract domestic and foreign investment in the field of culture and arts, and develop cultural industries.

Source: https://congthuong.vn/mien-giam-thue-de-khuyen-khich-huy-dong-nguon-luc-cho-phat-tien-van-hoa-342273.html