HCM City has seen 56,100 businesses having their value added tax (VAT) payments totalling VND1.5 trillion rescheduled, meaning each of them having a delayed payment of a mere VND26.7 million.
The figure was released by the HCM City Tax Department in response to a request of the Ministry of Finance on tax exemptions and reductions mandated by the government.
The city’s tax authorities have cut 30 percent on corporate income tax, or some VND290 billion for 55,805 businesses. State budget revenue in the year to date has dropped VND180 billion as the city has slashed land tax by half.
The Tax Department is working with the Department of Finance to lay out a roadmap for the extension of land use fees which will be applied next month.
Meanwhile, the general Department of Taxation is collecting the results of tax exemptions and reductions nationwide as of end-June in order to present to the Ministry of Finance and suggest next moves for tax policy-making in the year’s second half.