DECISION

REDUCING THE PAYABLE VALUE ADDED TAX FOR SUGAR-PRODUCING ENTERPRISES

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Value Added Tax Law No. 02/1997/QH9 of May 10, 1997;
In order to settle the difficulties for sugar-producing enterprises in the immediate future;
At the proposal of the Minister of Finance,

DECIDES:

Article 1.- To permit the sugar-producing enterprises enjoy the payable value added tax reduction for the sugar products, by-products and discarded materials (leaked molasses, cane residues, sludge residues) retrieved from sugar production process, as follows:

1. In 1999, the payable value added tax amount shall be reduced corresponding to the loss amount, but the maximum reduction amount must not exceeds the payable value added tax amount of the year.

2. In 2000, to temporarily reduce by 50% monthly payable value added tax amount.

When making the 2000 final settlement, if the monthly payable value added tax amount already reduced is higher than the actual loss amount, the enterprises shall be entitled to enjoy tax amount reduction equal to the loss amount, the difference between the temporarily-reduced tax amount and the loss amount must be fully paid to the State budget by such enterprises within 10 days as from the date of submitting the report on tax settlement. In case where the payable value added tax amount has been cut by 50% but the enterprises still suffer from a loss in their whole production and business, they shall be entitled to enjoy the payable value added tax reduction amount equal to the actual loss amount, but the maximum reduction level must not exceed the payable value added tax amount of the year.

Article 2.- This Decision takes effect after its signing.

Article 3.- The Minister of Finance shall have to guide the implementation of this Decision.

The ministers, the heads of ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.