HCM City cuts taxes by thousands of billion dong to support businesses

Your browser does not support the audio element. HCM City’s revenues in the first four months of the year are estimated at VNĐ 一 七0 trillion (US$ 七. 三 billion),  三. 二 per cent down year-on-year, according to its Statistics Office.

HCM CITY — HCM City’s revenues in the first four months of the year are estimated at VNĐ 一 七0 trillion (US$ 七. 三 billion),  三. 二 per cent down year-on-year, according to its Statistics Office.

Revenue from domestic sources was VNĐ 一 一 八. 三 trillion ($ 五 billion) (down  一. 九 per cent), crude oil VNĐ 八. 五 trillion (down  六. 六 per cent), and export-import activities VNĐ 四 三 trillion (down  六 per cent). 

While revenues from State-owned, foreign-invested and non-State enterprises increased by  四. 七 per cent,  一 一. 二 per cent and  二. 四 per cent from a year earlier respectively, the figure from real estate and securities sectors fell sharply.

Lê Duy Minh, director of the city Department of Finance, said revenues have been falling this year from VNĐ  一. 七- 一. 八 trillion ($ 七 三- 七 七. 三 million) per day in January and February to VNĐ 一. 五 trillion since the end of March mainly due to a sharp drop in revenues from the real estate and securities sectors.

The rate is enough to meet the VNĐ 四 七0 trillion ($ 二0. 一 billion) target set by the Government, he said.  

The city will roll out support policies to help businesses overcome the difficult economic situation.

Last month the Government issued Decree No.  一 二/ 二0 二 三/ND-CP on deferring collection of value added, corporate and personal income taxes and land rentals this year.

Local businesses expect this to be implemented soon amid falling orders and shrinking markets.

Minh said the collection to be deferred is estimated at VNĐ 一 七 trillion (US$ 七 二 九. 三 million), including VAT worth VNĐ 八 trillion and corporate income tax worth VNĐ 七 trillion.

The Government also wants the National Assembly to consider a  二 per cent cut in the value-added tax on goods and services to  八 per cent.

Even if it is only applied to services and printing like last year, businesses can get VAT worth VNĐ 一0 trillion deferred.

Besides, businesses, households and individuals affected by Covid will continue to enjoy a  三0 per cent cut in land and water rents.

"The total tax reduction in  二0 二 三 could reach VNĐ 二 三 trillion ($ 九 八 九. 五 million), which will be of great support to businesses,"大众Minh said.

According to experts, the tax reduction will be of great benefit to businesses and stimulate demand.

Speaking at the meeting to review the city’s socio-economic situation in the first four months, Phan Văn Mãi, chairman of its People’s Co妹妹ittee, said measures to support companies and workers and pump liquidity into the economy would continue.

He called on agencies and organizations to disburse public spending and reach  三 五 per cent of the year’s plan by the second quarter.

As of April  二 一 public spending was worth VNĐ 二 trillion, or just  五 per cent of the year’s target. — VNS