People submit documents at a tax office in HCM City. — Photo thanhuytphcm.vn

HCM CITY — HCM City’s revenues in the first four months of the year are estimated at VNĐ170 trillion (US$7.3 billion), 3.2 per cent down year-on-year, according to its Statistics Office.

Revenue from domestic sources was VNĐ118.3 trillion ($5 billion) (down 1.9 per cent), crude oil VNĐ8.5 trillion (down 6.6 per cent), and export-import activities VNĐ43 trillion (down 6 per cent). 

While revenues from State-owned, foreign-invested and non-State enterprises increased by 4.7 per cent, 11.2 per cent and 2.4 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 1.7-1.8 trillion ($73-77.3 million) per day in January and February to VNĐ1.5 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 VNĐ470 trillion ($20.1 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. 12/2023/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 VNĐ17 trillion (US$729.3 million), including VAT worth VNĐ8 trillion and corporate income tax worth VNĐ7 trillion.

The Government also wants the National Assembly to consider a 2 per cent cut in the value-added tax on goods and services to 8 per cent.

Even if it is only applied to services and printing like last year, businesses can get VAT worth VNĐ10 trillion deferred.

Besides, businesses, households and individuals affected by Covid will continue to enjoy a 30 per cent cut in land and water rents.

"The total tax reduction in 2023 could reach VNĐ23 trillion ($989.5 million), which will be of great support to businesses," 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 Committee, 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 35 per cent of the year’s plan by the second quarter.

As of April 21 public spending was worth VNĐ2 trillion, or just 5 per cent of the year’s target. — VNS