HCMC revenues set to fall 5% short of target

By Le Tuyet   October 30, 2023 | 10:55 pm PT
HCMC revenues set to fall 5% short of target
Tan Thuan Manufacturing Zone in District 7, Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Ho Chi Minh City is expected to see revenues from taxes fall 4-5% short of its target this year due to economic challenges.

The projection has total revenues landing VND20 trillion ($813.12 million) lower than hoped for.

Revenues fell 8.1% year-on-year to VND372 trillion in the first 10 months, equivalent to 79.3% of the target for the year, said Le Duy Minh, director of the city’s Department of Finance, at a meeting Monday.

The three components of tax collection – domestic, trade and crude oil – all saw declines, he said, adding that expenses rose 37% year-on-year.

The economic situation will likely remain difficult in the last two months, and for the whole year the city might see revenue 4-5% short of target, Minh said.

He proposed that the city focus on collecting tax debts worth a total of over VND40 trillion in the last two months.

Although many businesses are facing hardships, some remain strong, especially those in the e-commerce sector, Minh said, adding that authorities need to increase supervision and review to avoid tax losses in this industry.

The government gave HCMC a revenue target of VND469.68 trillion this year, but signs of decline were shown from the first quarter amid domestic and global economic challenges.

Last year the city saw revenue rise 23.6% to VND471.56 trillion.

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