Provincial People's Committee works with Camel Rubber Vietnam Co., Ltd

Tuesday - 26/06/2018 09:23
(Web Quang Tri) On December 20th, 2017, Mr. Nguyen Duc Chinh, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee together with representatives of relevant departments, agencies had a meeting with Camel Rubber Vietnam Co., Ltd. on the operation and expansion of its production in Lao Bao Special Economic - Commercial Zone.
Camel Rubber Vietnam Co., Ltd is a 100% foreign owned company, implementing the project of manufacturing motorcycle tires and tubes on 3.9 ha area in Lao Bao Special Economic - Commercial Zone with an investment capital of $4.9 million.
Particularly, in the first 11 months of 2017, the company's revenue was 287,400 billion dong, of which export turnover was 195 billion dong; contribution to the state budget was 6.280 billion dong; the company has created jobs for 402 workers with an average income of 6.8 million per person per month.
In the period of project implementation, the investment capital already exceeded the registered investment capital; the investors also need to expand the investment scale, add the production line of tires, diversify products. An investment project to expand the scale of automobile tires is being implemented on the land currently leased by the Provincial People's Committee (3.9 ha).
However, until now, the land rental exemption (11 years) for the whole area of ​​3.9 hectares and corporate income tax exemption have expired. The company expressed its wish to be exempted from import tax and be supported for the expansion of production scale with preferential policies.
Accordingly, the Economic Zone Management Board said: After the expiration of the land rental exemption period, the Company is entitled to a land rent equal to 30% of the land rent applied to mountainous districts; Therefore, the expansion project will be entitled to a land rent equal to 30% of the land rent applied to the mountainous districts of Quang Tri province together with the invested project.
Regarding corporate income tax, the period of tax exemption (8 years) expired. Therefore, if the investor chooses to enjoy tax incentives applied for the current project for the remaining period of the expansion project, the entire project (including expansion projects) will enjoy the CIT rate of 10% for the remaining time (compared to the normal rate of 20%). In case the investors choose to enjoy tax exemption or reduction for the added incomes by expanded investment, the CIT incentives shall be applied at the rate of 10% within 15 years; corporate income tax is exempted for 4 years and reduced by 50% for the next 9 years.
Regarding export tax and import tax: Import tax exemption is applied for goods imported to create fixed assets (applied to both new investment projects and expanded investment projects).
Personal income tax shall be reduced by 50% for people who have to pay this tax. In addition, the Company is entitled to other incentives in accordance with current laws and regulations of Quang Tri Province People's Committee.
Giving speech at the meeting, Mr. Nguyen Duc Chinh, Chairman of the Provincial People's Committee said that despite some difficulties caused by the policy change in Lao Bao Special Economic - Commercial Zone, the Company has made efforts in developing production, business and create jobs for local people.
Regarding the suggestions of the company, Mr. Nguyen Duc Chinh allowed Camel Rubber Vietnam Co., Ltd. to expand production and consider adjusting the area of ​​3.9 ha that the provincial People's Committee hired. The province would reserve the land for the company to expand its investment in the new location in the second, the third phase, so the company should study soon and have the appropriate choice.
Regarding taxes, the Provincial People's Committee assigned the relevant departments to coordinate with and support the Company in accordance with the law and create favourable conditions for the Company to promote production and business.
Mr. Nguyen Duc Chinh, Chairman of the provincial People's Committee also suggested: The company should be bolder in technology investment, plant capacity increase, production expansion, products diversification; The province is always willing to solve the difficulties for the Company in particular and the business community in the province in general.

Author: Van Anh

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