HCM City’s budget collection continues growing, but faces challenges - HCM City’s budget collection continues growing, but faces challenges - Website Ho Chi Minh City
Ho Chi Minh City continued enjoying growth in State budget collection in the first quarter of 2018, however, revenues from several sectors, especially import-export activities are forecast to fall, affecting the city’s budget collection this year.
According to the municipal People’s Committee, the city’s State budget collection during January-March was valued at 90.8 trillion VND (3.98 billion USD), equal to 24.11 percent of the yearly forecast and up 2.47 percent against the same period last year. Of the total, domestic collection reached 62.1 trillion VND (2.7 billion USD), up 5.02 percent, while revenues from import-export activities were 23.6 trillion VND (1.03 billion USD), down 6 percent year-on-year.
On the contrary, local budget collection in the first quarter was 21.7 trillion VND (952.3 million USD), down 13.6 percent year-on-year.
Director of the municipal Finance Department Phan Thi Thang said that the city has supported tax payers, and sped up the collection of excise and remaining corporate income tax from the fourth quarter of last year.
Ho Chi Minh City will also continue intensifying measures to collect tax debts by publicising those who deliberately drag out their debts or have big debts, Thang added.
However, the city will face challenges in collecting taxes in the rest of this year.
According to the municipal Customs Office, revenues from import-export activities are forecast to reduce by 700 billion-1 trillion VND (30.7-43.9 million USD) each month, as import tax on 90 percent of tax lines fell to zero thanks to free trade agreements.
The finance department said that the city’s tax collection from goods imported from members of free trade deals will fall by 11 trillion VND (482.9 million USD) per year.
Its revenues from oil and petrol, iron and steel, fertilisers and automobile will also drop gradually. For example, the volume of oil and petrol imported through Ho Chi Minh City port is predicted to fall as importers are moving to Van Phong port of central Khanh Hoa province and Nghi Son port of central Thanh Hoa province.
Ho Chi Minh City’s 2018 State budget collection estimates are 376.7 trillion VND (16.5 billion USD), of which 256.2 trillion VND will come from domestic revenues and 108 trillion VND from import export activities. Meanwhile, local budget collection is estimated at nearly 82 trillion VND (3.6 billion VND) in 2018.