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Facing big difficulties, travel firms asking for tax reductions VIETNAM - The HCM City Tourism Association has said it will propose that the government slash VAT, corporate income tax, and allow delays for tax payments of two quarters in order to help travel firms to survive their current difficulties.Nguyen Thi Khanh, Deputy Chair of the HCM City Tourism Association said the association proposes the 50 percent VAT reduction and 30 percent corporate income tax reduction – the same reductions applied in 2009, when the national economy was dwindling due to the global financial crisis which dealt a strong blow to the tourism industry.All travel firms have voiced the same worries about their business performance in 2011. Depending on tour routes, meal prices have increased 20-30 percent, the hotel room rate has increased 15 percent, and transportation fees have increased by 40-60 percent.The food price and service fee increases have led to sharp increases of 15-20 percent in tour fees for domestic tours, while the tour fee applied to foreigners in Vietnam has increased by five percent.As planned, the cooperation program between airlines and travel firms which...more
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