Big companies continue to seek tax benefits State agencies are worried about the budget deficit while many big companies from various sectors ask for tax incentives and other support from the government.  An employee of Vinaxuki works on a assembly machine According to Bui Ngoc Huyen, chairman of Xuan Kien Auto JSC (Vinaxuki), they are able to produce and assemble 40% of a car with five to seven seats domestically. They want a 70% reduction of excise tax from January 2014. They say this will help them to increase the production scale of car brands for rural areas and transport companies. At the same time, Vinaxuki asked for a tax delay of VND750 billion (USD36 million) so the company can pay for design work and technology transfer from the German DMG and Japanese Moriseiki companies. They also want to borrow VND250 billion to develop metallurgy factories. Previously, several domestic car manufacturers sent their calls for help to the Ministry of Finance, asking for tax delays worth thousands of billions of VND so they can "improve and develop the domestic car industry." Not only do the car manufacturers want a tax delay, other big players also seek tax incentives. Viettel Group, one of Vietnam's largest mobile network operators, wants a tax exemption for five years, reasoning that government should grant them some incentives since foreign firms are offered many incentives. An official from the Ministry of Industry and Trade said car manufacturers asking for tax incentives is nothing new. The draft plan to develop the Vietnamese car industry to 2020, with a view towards 2030, said that excise tax for cars with less than nine seats and over 40% localisation rate will be reduced by 70%. However, he said, the plan is still just a draft. According to the General Department of Taxation, the state budget will be greatly affected if so many firms delay taxes for five years. During such a long period, they may try to avoid their duties completely. Source: tienphong