Foreign tourists visit the capital city of Ha Noi. Value added tax and corporate income tax are expected to be cut by half in a bid to boost the tourism sector. — VNA/VNS Photo Thanh Ha

HA NOI (Biz Hub)— The Ministry of Culture, Sports and Tourism has sought Government approval to slash both the value added tax and corporate income tax by half for the tourism and service industry sectors.

According to the ministry, those sectors have been struggling in the current economic climate. The rising price of necessities such as gasoline and electricity, and increasing property taxes are pushing up the cost of tourism services.

The ministry has argued that refunding value added tax to tourists would provide more incentive for them to shop.

The proposal is part of a stimulus programme for the remainder of 2013 that is also encouraging tour operators, hotels, restaurants, tourist sites and shops to offer 10-40 per cent discounts to tourists during the low-season.

Airlines have also been asked to reduce fares and offer more tourist promotions.

The ministry has also called for the Government to crack down on taxi scams, robberies, rip-offs and other crimes that victimise foreign travellers.

According to the Viet Nam National Administration of Tourism, the numbers of foreign tourists has decreased year-on-year in the past three consecutive months.

Around 614,000 foreign tourists arrived in the country last month, down 2.4 per cent from the same period last year. — VNS