Finance Ministry urges tax incentives for local newspapers

LAWS - The Finance Ministry has proposed that newspapers in Vietnam are allowed to use their advertising revenues to offset operating costs before they pay income tax.

In its new proposal submitted to the government, the ministry said local newspapers have been reporting no profits or even losses recently. However, they were having to pay a 25 percent tax on advertising revenues, their major source of income.

Newspapers should be allowed to use advertising revenues to offset costs or invest in new facilities before taxes, the ministry has suggested.

It has also said that they should be permitted to set up their own funds for technology development using their income.

Dinh The Huynh, chairman of the Vietnam Journalists Association, said earlier this month that as input costs have increased and circulation declined, newspapers in the country were struggling with falling revenues.