Lawmaker proposes tax incentives for the chemical industry sector

On the morning of May 12, during the ongoing 9th session of the National Assembly, lawmakers gathered in plenary session to discuss the revised draft Law on Corporate Income Tax.

National Assembly deputy Ta Dinh Thi, representing Hanoi, expressed his overall support for the government’s explanatory report and the contents of the amended draft law. He also agreed with other deputies on the need for further review and refinement to fully institutionalize key directives laid out in Politburo Resolutions 57 and 68.

National Assembly deputy Ta Dinh Thi. (Photo: daibieunhandan.vn)

Howecer, Deputy Ta Dinh Thi proposed that the chemical industry should be added to the list of sectors eligible for corporate income tax incentives, as specified in Clause 2, Article 12 of the draft legislation.

He provided three main reasons for this proposed amendment:

Firstly, according to the National Assembly Standing Committee’s explanatory report No. 1275 dated May 7 regarding the amended Law on Chemicals, there is already consensus to include relevant provisions in the draft Law on Corporate Income Tax. This reflects an intention to integrate legal frameworks in a cohesive manner.

Secondly, the chemical industry plays a foundational role in Vietnam’s industrialization, modernization, and national security. This has been clearly emphasized in the country’s 2021–2030 socio-economic development strategy, as well as in Resolution 29, issued on November 17, 2022, by the 6th Plenum of the 13th Party Central Committee.

The resolution designates the chemical sector as a key and foundational industry that should be prioritized for development. However, the current draft law does not adequately reflect this priority.

Thirdly, under the Investment Law—specifically Clause 3, Article 20—special incentive levels and their durations are governed by the Corporate Income Tax Law and land legislation. Yet, the draft law’s list of sectors eligible for tax incentives does not include the chemical industry, creating a policy gap.

To address this inconsistency, Deputy Thi urged lawmakers to add the chemical industry to the list of sectors qualifying for tax incentives. This, he argued, would ensure policy alignment and coherence with the country’s broader socio-economic development goals.