HANOI: The Vietnamese authorities have rejected a call from local taxi firms to slash the amount of VAT they pay from 10 percent to five percent.
The Ho Chi Minh City Taxi Association had requested the cut in an attempt to mitigate the impact that ride-sharing apps such as Uber and Malaysia-based Grab (which pay a reduced rate of VAT) have had on traditional taxis in recent years.
According to reports in the national media, the Association had also asked the Government to increase the percentage of Uber and Grab turnover that is taxable in the hands of the firms. This request was also denied.
The Government has outlined plans to impose VAT on the vast majority of goods and services at 10 percent by 2020, with only essential goods benefiting from a five rate, and a zero percent rate in place for exported goods.
