PRODUCTS & SERVICES

Business proposals dropped charges of public telecommunications services for Internet

Aug 21, 2017

Doing Bussiness report of the World Bank, Vietnam must now spend up to 39.4% of the profits to taxpayers, higher than the average for East Asia and Asia Pacific (33.9%). This means, now do 10 contracts, the “tax” loss of nearly 4 contract.

These are the statistics of the World Bank for all enterprises in Vietnam in general but if the individual sectors, this percentage is probably even higher. Even for those bankrupt enterprises also continued to spend some charges to be “dead”.

These expenses reduce the competitiveness and even hinder the development of enterprises. This is contrary to the spirit of government is created, always with enterprises, creating favorable conditions for enterprises enhance their competitiveness, sustainable development. Or as confirmed by Prime Minister Nguyen Xuan Phuc, the Government will promote stronger to reduce costs, to investment performance of the business better and requires ministries as amended text to consult businesses, business associations.

1690219

Most recently at the Forum Vietnam private sector, businesses in the digital economy association has proposed to the Prime Minister on unreasonable charges for telecommunication enterprises. Specifically, in addition to the taxes and fees on businesses in general, the telecommunications enterprises still have a special fee according to business areas.

According to the Law on Fees and Charges with effect from 1.1.2017, in the field of information and communication that existed 11 fees (not including public telecommunication fees), including up to 5 categories expenses related to telecommunications activities.

According to Bui Quang Ngoc, FPT CEO, “In addition to taxes on business expenses, according to a particular industry, telecom enterprises have to close two other fees and charges are charged commercial rights of public telecommunications. Commercial rights fees revenue with 0.5% and shall be paid into the state budget also is charged public telecommunications 1.5% / revenue paid into the Fund for Telecommunications Service public utility by the Ministry of Information and Communication Management physical. The content of the two fees are very close together but due to two separate charge of the Ministry of Finance and the Ministry of Information and Communications. Only now in the middle is the second suffered this charge. ”

According to Mr. Ngoc, the contribution based on a percentage of turnover is not reasonable. With many telecom business revenue of 1.5% can be equivalent to 1/3 or even 1/2 the profit made, even now no longer profitable.

Meanwhile, annual, telecom enterprises have to spend a significant budget to invest in infrastructure, especially fiber optic infrastructure improve service quality. For example, in 2017 FPT expected investment of 1,500 billion in the infrastructure of the telecommunications services sector.

Mr. Ngoc proposal should abandon public telecommunications charges and the development of telecommunications services support areas so far in the national program based on the state budget is the main. Businesses can contribute on a voluntary but not be blamed directly contribute to the business through a fee. Each year, FPT Telecom have implemented hundreds of volunteer activities in several provinces in the country with billions budget.

Sharing the same opinion, Mr. Nguyen Trung Chinh, Chairman of CMC Technology Group, the public telecommunications charges based on the total revenue of the telecommunications business is unreasonable. He proposed removing the internet revenue from the sales of businesses have closed public telecommunications fees.

In response to the recommendations of the business, Deputy Minister of Information and Communications Nguyen Thanh Hung affirmed, can not ignore public telecommunications charges for funds needed to implement the program for remote areas. However, to reduce the burden on enterprises, the Ministry of Information and Communications is proposing to decrease the rate of public telecommunications from 1.5% to 0.7%. Nguyen Thanh Hung Song does not mention the time of this proposal into effect.

Meanwhile, Circular 57/2016 / TT-BTC issued in 2016 guiding the collection and accounting of contributions to the Fund Services public telecommunications Vietnam provides for the payment of fees of public telecommunications of the business is done in the period from 2015 -2020. While waiting for the authorities to reconsider the proposed reduction of public telecommunications, the telecommunications business will continue to pay a fee for some years.

Source:  http://vnreview.vn/tin-tuc-kinh-doanh/-/view_content/content/2235525/doanh-nghiep-kien-nghi-bo-thu-phi-vien-thong-cong-ich-voi- dich-vu-internet