Hanoi (VNS/VNA) - The Ministry of Culture, Sports and Tourism hasasked Prime Minister Nguyen Xuan Phuc for urgent support for tourism businessesimpacted by the second wave of COVID-19.

The ministry suggested that tourism firms should be allowed to delay payingloan interest as they have been facing a very difficult situation with a lackof customers, while 95 percent of travel businesses have halted operations.

The ministry said enterprises working in the hospitality sector such as motels,hotels and resorts in Hanoi and HCM City reported only 10 percent occupancyrates during the second wave of the pandemic while in the directly affectedlocalities of Da Nang, Quang Nam, and Quang Ngai, there were almost no foreignvisitors except some experts and those isolated due to the virus.

“As the hospitality firms, especially the small and medium-sized firms, couldnot make profits and face losses, the Government’s policy of 30 percentreduction of corporate income tax is no use to help them," a document fromthe ministry read.

Instead, the culture ministry asked for solutions to reduce taxes, fees andelectricity bills for the firms.

It asked the Government to allow hospitality firms to enjoy the electricityprices applied for the production industry, which are currently a third lowerthan the electricity bills for the service industry.

It also asked the PM to reduce the VAT rate from 10 percent to 5 percent in2020 and 2021.

Regarding banking support, the ministry asked for extensions for paying loaninterest until December 2021 because most tourism businesses do not make anyincome and they cannot pay interest.

According to the ministry, most banks currently apply a reduction of 1 or 2 percentin lending interest rates or extend the debt repayment period for customersaffected by COVID-19 but they have not mentioned plans to delay the payment ofloan interest.

At the same time, the ministry said it was necessary to continue restructuringdebts, extending loan repayment periods, debt grouping, loan interest paymentand excluding overdue loans to help businesses.

To support the employees of the firms, the ministry asked for an extension toretirement and death insurance payment deadlines and delaying the time ofpayment of trade union fees for those firms while keeping all the rights ofhealth insurance for their employees.

It also asked the Government to create more favourable conditions andprocedures for the industry’s firms to receive support, helping them moreeasily access the Government's 62 trillion VND (2.6 billion USD) supportpackage./.