Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam tax collection reaches record high in Jan-Jul

Vietnam tax collection reaches record high in Jan-Jul

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Production at Youngbag Vietnam in Vinh Phuc Province's Binh Xuyen Industrial Zone. VNA/VNS

Vietnam tax collection reaches record high in Jan-Jul

Vietnam's tax collection in the first seven months of this year set a record high, driven by robust banking, property, securities and automobile production sectors, but was slowing down as the virus took a toll, according to the General Department of Taxation.

Statistics showed that tax collection was estimated to total 763.8 trillion dong ($33 billion) from January to July, equivalent to 68.4 per cent of expectations for the full year and increasing by 13.1 per cent against the same period last year, setting a record high in terms of collection value.

The General Department of Taxation said tax collection in the period was good, mainly thanks to the recovery of the economy in the final months of 2020 and the increases in tax collection from robust sectors, including banking, real estate, securities and automobile production.

Tax collection from the banking sector increased by 72.9 per cent, the equivalent to six trillion dong on good credit growth, increases in banking services fees and a reduction in operating costs which helped increase banks’ profits.

The real estate market also recovered in late 2020 and early 2021 with a number of projects transferred which pushed tax collection up by 61.7 per cent to 25 trillion dong. The increase in merger and acquisition deals in the early months of 2021 also pushed up corporate income tax collection by 2.6 times to 5.7 trillion dong.

The tax collection from the securities sector rose by 2.47 times to more than five trillion dong in January – July.

Policies to promote the consumption of domestically produced and assembled cars also helped increase tax collection by 47.1 per cent, the equivalent to 35 trillion dong.

However, the General Department of Taxation said that tax collection was on a decreasing trend month over month with higher decreases since the fourth outbreak of the virus in late April.

Statistics showed that domestic tax collection increased by 15.9 per cent in April but slowed down to 5.6 per cent in June and even dropped by 10.4 per cent in July.

Tax debts also increased by 23 per cent against the end of 2020 to more than 116.8 trillion dong, reflecting that production and business were struggling in the Covid-19 pandemic.

The tax watchdog said that while the economy was still facing challenges as the pandemic remained complicated in a number of provinces and cities, including Ho Chi Minh City, Dong Nai, Binh Duong, Long An and Ba Ria-Vung Tau, focus would be placed on removing barriers and making it easier for enterprises to maintain their production and business and attract investment, which would help increase tax revenue in the long term.

The tax watchdog is also focused on implementing tax and fee exemptions, reductions and extensions for enterprises and citizens following the government’s directives to promote production and business and well as economic growth.

Special attention would be attached to enhancing tax management of e-commerce and businesses on digital platforms such as Facebook, Google, Youtube and Netflix.

VIET NAM NEWS/ASIA NEWS NETWORK

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