HANOI, April 4 (Xinhua) -- Vietnam considers lowering corporate income tax rates (CIT) for small and micro-sized enterprises as part of efforts to ease their financial burdens, local media reported on Tuesday.

The tax rate could be fixed or progressive according to the size of the income of small businesses, the Vietnam News reported.

A fair playground should be created for both domestic and FDI companies, the newspaper said, citing Nguyen Duc Nghia from Ho Chi Minh City Union of Business Associations.

Most FDI enterprises in Vietnam were provided with preferential tax rates at around 10 percent to 15 percent. Meanwhile, SMEs which contributed 45 percent to GDP, 31 percent of the budget revenue and created more than 5 million jobs, were bearing higher rates, he said, noting that this would undermine their competitiveness.

Nguyen Thi Ngan from Hanoi Association of SMEs said CIT reductions on SMEs would help them have resources for investing in production and business, especially in the context of post-pandemic difficulties and increasing uncertainty in the global market. Enditem

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