Digital transformation of news agencies is taking place drastically, they need resources to invest in people and technology.

Currently, the corporate income tax rate is 20%, except for cases that are eligible for incentives or subject to high taxes according to regulations. According to the proposal, the Government proposes to reduce corporate income tax incentives for electronic newspapers, television, and radio by 5% compared to the current rate, to 15%. Print newspapers will still be subject to the 10% incentive rate as currently regulated.

Giving his opinion at the morning group on November 22, Mr. Tran Hoang Ngan, a delegate from Ho Chi Minh City, said that the tax rates applied to the fields of press, media, and culture are currently too high. According to him, these are important fields and need more tax incentives.

He analyzed that the press has made great contributions to the construction and development of the socio-economy, the fight against bad and toxic information, and the prevention of corruption and waste. However, the revenue of press agencies has decreased in recent times due to lower advertising revenue and competitive pressure from social networks. Meanwhile, they have to increase investment in facilities and technology to meet the needs of development and digital transformation.

"The press has both reduced advertising revenue and increased investment spending, so it is facing difficulties. It is necessary to apply a common tax rate of 10% for print and electronic newspapers, or even exempt corporate income tax for the press for 5 years, or apply a minimum tax rate to help this industry overcome difficulties," he said.

Sharing the same opinion, Mr. Tran Anh Tuan, Head of the Ho Chi Minh City Enterprise Management Innovation Board, also said that "taxes need to be reduced further, to 0% or 5% for the press sector".

Delegates all said that the press is not a business sector, they perform political and communication tasks so they need appropriate support and incentives.

"The role of the press in society is very important, especially in the history of development and current policy communication," said Mr. Do Chi Nghia, Standing Member of the National Assembly's Committee on Culture and Education, proposing to bring the tax on the press to a common rate of 10%.

According to him, the 10% tax on printed newspapers, while other types of newspapers are taxed at 15%, is unreasonable. Currently, there are almost no newsstands in Hanoi and Ho Chi Minh City, while there were many before. Everyone has switched to other platforms, such as online newspapers, even television has switched to digital platforms such as watching on YouTube...

Not to mention, the press is currently developing on multiple platforms and media, meaning that print newspapers have websites, or television develops many digital platforms... "It is not reasonable to separate 10% and 15% into two categories. If we give incentives, we should give incentives commensurate with the level, clearly demonstrating our policy of caring for the press," he added.

In addition, the digital transformation of news agencies is taking place vigorously, they need large investment resources in human resources, technology, as well as ways to transform journalism. "Tax support will help the press have more resources, readers, compete and do well in political tasks, so that the whole society benefits," he concluded.

At many press units, advertising revenue has decreased, forcing them to "revolve" to renting out part of the building to get resources to operate the editorial office.

Ms. Tran Thi Dieu Thuy, Vice Chairwoman of Ho Chi Minh City People's Committee, agreed to reduce and provide more tax incentives for press agencies. In addition, Ms. Thuy said that the current way of calculating taxes for the press does not show support, as the revenue from press advertising is entitled to tax incentives, while the revenue from renting buildings for operating activities is subject to the normal tax rate.

"It is unreasonable for the tax authority to separate and apply such tax calculation to the press. I propose that all business activities serving the operation of the newspaper should enjoy tax incentives," she said.

According to the program, the National Assembly will discuss in the hall the draft Law on Corporate Income Tax (amended) on November 28.