The Ministry of Planning and Investment proposed for Nghe An to retain about 600 billion VND in tax revenue from 22 hydroelectric plants to develop infrastructure and society in difficult western areas.
The Ministry of Justice is evaluating the draft Resolution of the National Assembly on piloting a number of specific mechanisms and policies for the development of Nghe An province.
This province has 22 hydroelectric plants (mostly small hydroelectric plants) in the western region, but this is a particularly difficult area with poor transportation infrastructure. Schools and hospitals are slow to complete due to lack of capital. Some villages still do not have electricity for daily life and production.
The Ministry of Planning and Investment – the agency in charge of drafting the draft resolution – said that hydroelectric plants here ensure electricity supply for the country, but have a significant impact on the environment and people’s lives. During the rainy season, households often suffer from flooding, causing economic losses.
Therefore, according to this agency, Nghe An needs to allocate resources to invest in infrastructure, offset the impact and promote socio-economic development. As one of the solutions, the Ministry proposed for the province to retain about 600 billion VND in tax revenue from 22 hydroelectric plants to develop infrastructure and economy in this difficult area.
According to the State Budget Law, Nghe An province is still allowed to collect taxes from hydroelectric production facilities in the area. But this revenue source is used to determine the percentage of revenues divided between the central and local budgets.
This proposed policy is different from the provisions in the State Budget Law, but the Ministry of Planning and Investment believes that it is suitable for piloting a new, specific mechanism and falls under the consideration authority of the National Assembly.
“The quality of life in the western region of Nghe An will improve, thanks to investment resources in infrastructure projects, environmental pollution treatment and social security tasks,” the planning agency stated. point.
In the draft, the Ministry of Planningh&Invest also proposed many preferential policies for marine economic development. In particular, the People’s Committee of Nghe An province is assigned and licensed to farm aquaculture at sea for domestic investors in the sea area 6 nautical miles from shore.
In addition, investors are exempted from using the sea area for 15 years and have this fee reduced by half for the area used for aquaculture projects.
Investors who invest capital in seafood projects here can enjoy a 10% corporate income tax rate, a 4-year exemption and a halving of the tax payable for the next 9 years. Aquaculture projects at sea from 3 to 6 nautical miles are subject to a 17% corporate income tax, a two-year exemption and a halving of the tax payable for the next 4 years.
Nghe An – the province with the largest area in the country (16,490 km2), ranks 4th in population size with more than 3.3 million people. This locality is the central hub of the North Central region, located on the main traffic axis connecting North – South and has a developed, transnational transportation system (road, railway). There is also an 82 km long coastline and a reserve of fish and seafood of about 80,000 tons.
Last year, the aquaculture area in the coastal area of this province was 6,676 hectares, with an output of nearly 29,500 tons. However, marine farming activities here are mainly near shore, small scale, and low efficiency. Therefore, the drafting agency believes that if this policy is implemented, it will increase state management of environmental pollution control and ensure marine aquaculture security. This is an opportunity to establish a value chain, linking farms with food supply systems, breeds, processing, consumption and distribution, bringing high economic efficiency.
In 2023, Nghe An’s budget revenue will reach 20,250 billion VND, exceeding nearly 28% of the plan and the second consecutive year the province has exceeded revenue. This province is also in the top 10 localities attracting the largest FDI investment in the country, with over 1.6 billion USD.