Ho Chi Minh City proposes 3-month delay for seaport fees

Ho Chi Minh City Department of Transport has proposed delaying the collection of seaport infrastructure fees for three months to help businesses weather the COVID-19 storm.

The department has just issued a document to business associations seeking comments on a draft amendment to the collection of seaport infrastructure fees in Ho Chi Minh City.

The city will start a pilot programme to collect seaport infrastructure fees on June 25 before official implementation begins on July 1. Due to the resurgence of COVID-19 in the city, several enterprises and business associations have proposed to delay the collection to support them during the tough time.

Ho Chi Minh City Department of Transport has drafted a dossier to amend and supplement Article 1.5 of Resolution No. 10/2020/NQ-HDND on the fee rates for the use of infrastructure works, service works, and public utilities in the port border area in Ho Chi Minh City.

Accordingly, the department has proposed to delay the collection for three months until October 1 instead of July 1 as scheduled. According to the report submitted to Ho Chi Minh City People’s Council, the 3-month timeline is based on the scenario that the COVID-19 pandemic can be basically controlled in July. Thus, there will be two months for businesses to recover from the pandemic.

Thus, foregoing an estimated VND723 billion ($31.43 million) in these three months, the department said that this is a “support for production and business enterprises as well as export-import enterprises to ensure the realisation of the dual goals of both drastically preventing the COVID-19 pandemic and promoting socioeconomic development”.

Before that, many businesses and business associations have sent requests to Ho Chi Minh City to consider delaying the fee collection time. In particular, the associations suggested reviewing the regulations on fees. Currently, the tax rate is being regulated differently for businesses that open declarations in and outside Ho Chi Minh City.

By Thanh Van