HCM City budget collections bounce back

15-May-2021 Intellasia | VNA | 5:02 AM Print This Post

HCM City brought in more than 140.3 trillion VND (6.06 billion USD) in budget collections during the January April period, a 15.76 percent increase year-on-year and fulfilling 30.45 percent of the annual target.

According to Nguyen Thi Hong Ha, director of the municipal Department of Finance, the figure comprized close to 101.49 trillion VND in domestic collection and 38.8 trillion VND in taxes from import-export activities, up 14.47 percent and 19.39 percent, respectively.

The department attributed the growth amid COVID-19 to the prompt local implementation of government policies such as exemptions, reductions, and extensions on tax payments, debt restructuring, and loan interest rate exemptions and reductions. Such policies helped taxpayers address the difficulties they were facing over the closing months of 2020 and recover their production and business, which enabled a recovery this year.

Rising consumption demand also contributed to the higher figure, it added.

Echoing this view, Le Duy Minh, head of the municipal tax department, said the recovery in budget collections was the result of prompt local assistance to businesses and taxpayers.

In the first three months of this year, collections of special consumption tax rose 18.9 percent year-on-year, with beer and wine posting volume and value increases thanks to rising demand during the Lunar New Year holiday in mid-February. Sales of motor vehicles of less than 24 seats manufactured and assembled in Vietnam also rose due to the positive impact of a policy last year on reducing registration fees by 50 percent until December 31.

Land use fees unexpectedly soared 86.79 percent under the impact of Decree No 79/2019 concerning land use levy collections, which put limits on who owes such a levy.

Despite the recent growth seen in e-commerce, related collections are facing challenges from tax avoidance.

At a recent conference, Nguyen Thanh Phong, Chair of the HCM City People’s Committee, acknowledged that the e-commerce industry is developing too quickly and that State management has yet to keep up with its pace of development, and this is the main cause of related tax losses./.

https://en.vietnamplus.vn/hcm-city-budget-collections-bounce-back/201442.vnp

 

Category: Economy, Vietnam

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