Ho Chi Minh 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.
Stevedoring at Cat Lai port, Ho Chi Minh City
HCM City (VNA) –
Ho Chi Minh 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
According to Nguyen Thi Hong Ha, director of the municipal Department of
Finance, the figure comprised 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, Chairman 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./.